Due to its legal nature, the official exchange rate is also known as the legal exchange rate, which usually refers to the exchange rate published by the country’s financial institutions (such as the central bank, the administration, the Ministry of Finance). It stipulates that all transactions shall be subject to the exchange rate published by the official.
The official exchange rate is divided into single exchange rate and multiple exchange rate.
Multiple exchange rate refers to more than one exchange rate set by a country for its own currency. It is a form of exchange rate mainly used to reward exports, restrict imports, and limit the inflow or outflow of capital to improve the balance of payments imbalance.
The official exchange rate is between the national currency and various other currencies authorized by the foreign exchange authorities of countries with stricter exchange controls to set and publish.
And this is the official rate issued by the government, which is often different from the black-market rate, which reflects market supply and demand.
