Jan 31 2019

Custom Exchange Rates

Exchange Rate is a price of domestic currency in the terms of foreign currency. In exchange rates there are two components in the exchange rates one is domestic currency and other is foreign currency. Exchange rates are quoted in direct or indirect. When a one unit value of foreign currency is quoted in domestic currency is known as direct quote and if one unit value of domestic currency is quoted in foreign currency it is known as indirect quote. Usually quotes are given in Dollar terms, there can also be quoted in other foreign currency which is known as cross currency.

Banks quotes two types of rates for the customer – Sell rate and buy rate, sell rate is quoted by the bank when it wants to sell the foreign currency in the exchange to the local currency, it is also called ask rate. Whereas buy rate is quoted by the bank when it wants to buy the foreign currency from the customer, also known as the bid rate.

Custom Exchange Rates are also classified according to the period of the transactions. Cash rate is quoted if the transaction is settled same day, whereas Tom Rate is quoted if the transaction is settled the next day. Spot rate or interbank rate is quoted if the transaction is settled after two working days. Interbank bank rate is constantly fluctuating and banks add margin on interbank rate for customers.

Currency exchange rates depend upon factor like demand and supply, interest rates, inflation and changes in critical exports, but few exchange rates are pegged, in this process the central bank intervenes in the market, causing artificial demand or supply and tries to keep the currency in the fixed predetermined band.

We at Myforexeye Fintech, India’s first all in one forex services provider, developed a feature in Myforexeye App called Rate check where customer can check the bank rates with the live market rates, including bank margins. Not only the spot rate can be checked but also the forward rates which are mostly not available through the internet can be verified with. This provides transparency in the rate which the bank provides to the customer. The App also lets encourages the user to set Rate Alerts which alarms when the set target rate is reached in the currency market. When the main business of the client requires more focus, the Rate Alert option comes handy and lets one stay tuned to the market at all times. Forex pulse helps to stay tuned to India centric forex world and give not only forex news but also research and analysis on the major currencies across the globe.

Read more about Export Exchange Rate