Foreign Exchange Rate is the Rate, Exchange Rate or price at which the currency of one country is converted into the currency of another country.
In other words, it is the “price” of the foreign currency in terms of the domestic currency.
Generally concentrated in commercial banks and other financial institutions.
The purpose of their trading is to pursue profit, the method is cheap buy expensive sell, earn the price difference, the basis of its buying foreign exchange is to buy the exchange rate, also said;
The exchange rate at which foreign exchange is sold. Also called the asking rate.
In the following, the buying rate is the amount of local currency the bank pays to buy one unit of foreign exchange, and the selling rate is the amount of local currency the bank receives to sell one unit of foreign exchange.
The central exchange rate is the central rate between the buying exchange rate and the selling exchange rate, that is, the buying exchange rate is 10 selling exchange rate 1/2= the central exchange rate, which is applicable to the trading of foreign exchange between banks, which means that they do not earn profits in the trading of foreign exchange.
