- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
- Topics: 1
- Replies: 0
- ☆
Example:
Exchange rates quoted today are:
Spot rate 0.5120 – 0.5152 £ / $
One-month forward rate 0.5141 – 0.5171 £ / $
Three-month forward rate 0.5171 – 0.5202 £ / $Which is the buying rate and which is the selling rate for the bank?
I am quite confused.Please confirm if i am right.
The bank buys at 0.5120
The bank sells at 0.5152It depends which currency the bank is buying or selling – funds or dollars!
Also, it is not the bank that really matters – it is what rate the company will use for conversion that matters.
I explain all this in great detail (with examples) in the first of my free lectures on foreign exchange risk management (and I am not going to type out all my lectures again here 🙂 )
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Hedging/Exchange rate’ is closed to new replies.