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I have a question that : what is the exchange rate used in multilateral netting? spot rate or spot mid rate?
When i do Question 53 – Kenduri in Revision kit, i wonder why the spot mid rate would be used and how to calculate?
Can you help me on this question? Thank you in advance.The rate to use depends on the company’s policy – there is no rule – and so questions always tell you what rate to use.
In Kenduri, the last line of the first paragraph says to use spot mid-rates.The spot mid rate is the average of the two rates given – add them together and divide by 2.
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