Currency Exchange Rates

Published on in Currency Calculator App UK, Yahoo, Bing, Google Currency Calculator by

Types Of Exchange Rates And Their Benefits

Currency Exchange Rates? If anyone wishes to purchase any property overseas, one must consider doing thorough research before that. Initially to begin with the property laws of the country followed by investigating and finding specialist currency broker and also using spot contract facility for fixing exchange rate well in advance with the transacting bank.

There are various ways in which exchange rates can be expressed:

1. Spot Exchange rates – This exchange rate is driven by FOREX market on the basis of demand and supply of the currency. This exchange rate is derived with actual exchange rate based on the current market value of the currency.
2. Effective Exchange Rate Index (EER) – This is a weighted index based on sterling’s value where many international currencies are weighted in proportion based on trade between the UK and each country and then the rate is decided.
3. Forward Exchange Rate – Forward rate is based on forecasting models determining the value of any currency at a futuristic value. This exchange rate is used by the companies and banks for buying foreign currency with reduced risk of future market fluctuations.
4. Bilateral Exchange Rate – This is a simple method where the value of one currency is determined by its trading value against another currency.
5. Real Exchange Rate – Real exchange rate is domestic price index ratio between two countries. Any rise in the real exchange indicates aggravation of international competitiveness for a country.

Currency Exchange Rates

There is a difference between the exchange rates in banks and counter when one wants to travel cash. Cash counters give less money while inter- bank transfers gives better rates.

Benefits of exchange rates lie both for the country’s economy and the trader. While traders can earn good money, countries use it to create more of a favorable economic environment by manipulating large reserves of foreign currency.

This helps then to manipulate exchange rates and stabilize the foreign exchange rates. More the country’s foreign reserves, the better the country can defend itself from tentative attacks on the domestic currency.

Recent Posts

» «

Comments are closed.

Live Currency Calculators

1 GBP = 1.12014 EUR

1 EUR = 0.8927 GBP

Change Currencies

Free Currency Calculators Mobile App

Best iTunes currency converter mobile app

Free iTunes Mobile AppiTunes currency calculator mobile app for free. Find live currency exchange rates for your iPhone or iPad.

Best Google Play currency converter mobile app

Free Google Play Mobile AppGoogle Play currency calculators mobile app for Android phone. Free on google play getting live interbank exchange rates.

© 2017 Currency Calculators App | : All Rights Reserved : Google Currency Calculators - Bing Currency Converter- Yahoo Currency Calculators