The market is the real exchange rate at which foreign exchange is freely bought and sold.
In the foreign exchange market, what really matters is the market rate, which fluctuates freely according to changes in supply and demand, while the official rate usually functions only as a central rate.
In relatively loose countries, generally at the market rate;
In countries with strict foreign exchange controls, the black market rate is often higher than the official rate.
Instead of adopting a completely laissez-faire policy on the dynamics of market exchange rates, the national monetary and financial authorities use various means to intervene so that they do not deviate too much from the official exchange rate.
The market exchange rate can be divided into two types. One is the spot exchange rate, which is used in spot transactions, and the other is the exchange rate used in forward transactions.
