UGG Boots Exchange rate

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bank to buy foreign currency with industry or customer when the exchange rate used. Direct quotation, the number of foreign currency equivalent of that rate is less the purchase price, when using indirect quotation opposite. ② selling rate. Also known as the ask price, that is, banks to sell foreign exchange interbank or customer when the exchange rate used. Direct quotation, the foreign currency equivalent of that currency exchange rate is a few more selling price, when using indirect quotation opposite. There is a difference between buying and selling, this difference is the bank trading of foreign exchange earnings, usually 1% to 5%. Interbank foreign exchange transactions between the use of buying and selling exchange rates currency trading, also known as the industry is actually the foreign exchange market trading price. ③ middle exchange rate. Bid and ask price is the average. Western Journal reported that the middle of the exchange rate used when the message exchange rate, exchange rate calculation set in the middle with the currency exchange rate set count reached. ④ cash exchange rate. State regulations generally do not allow the circulation of foreign currency in the country, only the foreign exchange domestic currency, to be able to buy their goods and services, resulting in the sale of foreign exchange cash exchange rate, that is, cash exchange rate. Logically cash foreign exchange rates should be the same, but need to be transported to the issue of foreign currency cash to the country, because delivery of foreign currency cash to spend some freight and insurance, therefore, banks in the exchange rate when foreign currency cash redemption foreign exchange buying rate is usually lower than; and banks sell foreign currency exchange rates used are higher than other foreign exchange selling rate. (4) by way of payment into a bank wire transfer foreign currency exchange, mail transfer ticket exchange rates and currency exchange wire ①. Wire exchange rate foreign exchange business of foreign exchange after selling their banks, that their foreign branches or telegraph agency commission payment to the payee are using an exchange rate. As fast wire transfer payment, the bank can not occupy the position of customer funds, while the higher cost of international telegraph, wire transfer rates than the average rate so high. However, fast wire transfer of funds, will help speed up the flow of international capital, so the wire in the foreign exchange account for the vast proportion. ② mail transfer rate. Mail transfer rate is the bank issued payment orders sent by letter post paid by way of bank transfer payment to the payee are using an exchange rate. As the postal payment orders will take some time, during which time banks can take the customer's money, so, mail transfer rate lower than the telegraphic transfer exchange rate. ③ ticket exchange rates. Ticket exchange rate is when banks sell foreign currency, opening a branch or agency by foreign money order payment to the sender, or send its own foreign exchange rate used withdrawal. As the ticket exchange foreign currency from selling foreign exchange to pay for some interval of time, the bank can take during this time the customer's position, so the ticket exchange rate is generally lower than the telegraphic transfer exchange rate. Department of Health vote counting short-term and long-term ticket exchange of points, the exchange rate is also different. As the banks more time to use customers' funds, so the short term promissory notes ticket exchange rates exchange rates low. (5) The delivery period is divided by a foreign exchange spot rate and forward rate ① spot rate. Also called the spot exchange rate refers to the sale of foreign exchange transaction sides within a day or two days for delivery of the exchange rate. ② forward rate. Forward rate for a certain period in the future delivery, and pre-contract by the buyer and the seller, the exchange rate agreement. To the delivery date by the parties to the agreement by order of the exchange rate, money exchange rates for two clear. Forward exchange transaction is a reservation, is due to foreign buyers of foreign currency funding needs at different times, and in order to avoid foreign exchange risk arising from exchange rate movements. Forward foreign exchange rate and the spot rate is compared to the difference between. This difference is called the forward difference, there are premium, discount, cheap three cases, said the forward rate premium is more expensive than the spot rate, forward rate premium is that cheaper than the spot rate, parity, said the two are equal. (6) the distinction between less favorable foreign exchange management, with the official exchange rate and market rate ① official exchange rate. Refers to the national institutions (Ministry of Finance, the central bank or foreign exchange control authorities) announced exchange rate. Official exchange rate can be divided into single and multiple exchange rates. Multiple exchange rate is a government requirement for a national currency over the foreign exchange rate, foreign exchange control is a special form. The aim is to reward the export restrictions on imports, limiting the inflow or outflow of capital to improve the international balance of payments. ② market exchange rate. Is traded on the foreign exchange market in the free exchange of real exchange rate. Loose in the country foreign exchange management, announced the official exchange rate is often only play a central role in the exchange rate, the actual foreign exchange transactions at market exchange rates. (7) divided by banking hours, there are opening and closing rate ① opening exchange rate. Known as the opening price, a foreign exchange bank business day in the beginning of foreign exchange trading business when the exchange rate used. ② the closing rate. Also known as the closing price, is a foreign bank business day in the foreign exchange rate used by the end of the transaction price method to determine the parity between the two different currencies, first determine the currency with which countries as a standard. As determined by different standards, so they have several different methods of foreign exchange price. Direct quotation direct quotation, also known as the price payable method, based on a certain unit (1,100,1000,10000) of foreign currency to pay for the standard to calculate how many units to meet local currency. Purchase of certain units is equivalent to calculating how much the currency payable in foreign currency, so called to cope with quotation. In the international foreign exchange markets, including China, most countries are currently using direct quotation. Such as the yen-dollar exchange rate is 1 U.S. dollar to 119.05 119.05 yen. In direct quotation, if the foreign currency equivalent of some units more than the amount of the currency front, then the foreign currency rise or decline in the value of the currency, called the foreign exchange rate; the other hand, if you want less than the original currency that can be converted to the same amount of foreign currency, foreign currency which shows a decrease or increase in local currency currency, called the foreign exchange rate fell, that the value of foreign currency exchange rate is proportional to ups and downs. Direct quotation and trading of commodities like common sense, such as U.S. dollars of direct quotation is the U.S. dollar foreign exchange as a trading commodity, as a unit in U.S. dollars, and the unit is constant, and as one of the RMB currency, is changing. The sale of general merchandise, too, 500 to buy clothes, 550 yuan to sell it, earned $ 50, merchandise has not changed, while the currency has increased. Indirect quotation, also known as indirect quotation receivable quotation. It is based on certain units (such as a unit) of the national currency as a standard to calculate the number of units of foreign currency receivables. In the international foreign exchange market, the euro, British pound, Australian dollar and so are the indirect quotation. Such as the euro-dollar exchange rate is 0.9705 or 1 euro 0.9705 U.S. dollars. In indirect quotation, the amount of domestic currency remains unchanged, the amount of foreign currency with domestic currency's value changes. If a certain amount of currency to exchange the foreign currency amount than the previous low, which indicates that foreign currency rise, the currency currency decline, foreign exchange rates fall; the other hand, if a certain amount of currency to exchange the foreign currency amount of the previous period, then the foreign currency decreased The currency currency rise, foreign exchange rate, that is, the value of foreign currency and exchange rate fluctuations is inversely proportional. Therefore, the indirect quotation and direct quotation opposite. Direct quotation and indirect quotation of the exchange rate ups and downs that the opposite meaning, so in reference to a currency exchange rate and the level of the exchange rate on its ups and downs, the price must be clear which method used, to avoid confusion. U.S. dollar-denominated method, also known as the New York price quotation method is defined on the international financial markets in New York, in addition to the pound with a direct quotation, the use of other foreign currencies the price of indirect quotation method. U.S. dollar-denominated law by September 1, 1978 to develop and implement, is currently prevailing on international financial markets, the price law in the gold standard, the exchange rate determination is based on the gold points (gold point), under the conditions of the notes in circulation , its decision is based on purchasing power parity (purchase power par) method for determining the exchange rate with the method of determining changes in the international monetary system changing. Gold standard system and change the decision of the exchange rate system is based on the gold standard for the currency of the monetary system of gold, including gold coins, gold bullion and gold exchange standard. Before World War I, the prevalence of typical gold standard system, characterized by gold as currency; free casting and melting; coins and bank notes convertible; free gold input and output as a world currency. States gold coins for each unit of the provisions contained in the weight and fineness of gold, that gold Gold Content, currency parity between the gold content to conversion, the ratio of the two currency is the coin of gold parity (Mint Par). For example: £ 1 coins for the 113.0016 grains of gold, $ 1 for the 23.22 grains of gold coins, mint parity 113.0016 ÷ 23.22 = 4.8665, that is approximately equivalent to 1 pound $ 4.8665. This provides the exchange rate may fluctuate, but the volatility has some limits. This threshold is called the gold points (Gold Transport Points), the gold points is equal to the mint parity with the output from one country or from another country needs to spend gold input costs, including packaging, transport costs and transport insurance gold. If the exchange rate fluctuations between the two countries engaged in international settlement makes direct use of gold when more cost-effective than the use of foreign exchange, the traders would rather direct delivery gold. Through this mechanism, exchange rate fluctuations can be automatically maintained within a certain range. Currency notes in circulation system, the decision notes and changes in the system, the national currency notes as a representative of metallic money, and in light of past practice, the decree notes of gold, called gold parity, the contrast is the gold parity of the exchange rate between the two countries basis of decisions. But the notes can not be converted into gold, so gold is often ineffective legal notes. Therefore, countries in the implementation of the official exchange rate by the national monetary authorities (the Ministry of Finance, the central bank or foreign exchange control authority) provides the exchange rate, all foreign exchange transactions must be in accordance with the exchange rate. Countries in the implementation of market exchange rates, currency exchange rates on the foreign exchange market with supply and demand changes. Exchange rate on the balance of payments, national income and so have an impact. Western theory of exchange rate determination theory of exchange rate determination are mainly Western international lending that purchasing power parity, exchange, said the psychological, monetary analysis and financial assets, said they were from a different perspective on the determinants of exchange rate analysis. International lending is the British economist GE Johnson made in 1861, he has the gold standard as the background, a more complete exposition of the relationship between exchange rate and balance of payments. He believes that changes in exchange rates is caused by supply and demand of foreign exchange, and foreign exchange supply and demand mainly from international lending. International lending can be divided into mobile and fixed loan lending. Flow lending is actually paid has entered the phase of the loan; fixed loans are not yet entered the stage of actual payment of the loan. Will affect only the flow of foreign exchange supply and demand loans. Actually paid in one country to enter the phase of current borrowings, if the debt is greater than the debt, foreign exchange, foreign exchange supply will exceed demand, leads to currency appreciation, currency devaluation. Conversely, if the period of time to enter the stage of actual payment of the debt is greater than the debt, foreign exchange, foreign exchange demand will exceed supply, leading to currency devaluation, foreign currency appreciation. Purchasing power parity is the early 1920s the Swedish economist Cassel first proposed. The basic idea is the theory: people need foreign currency because of foreign currency in domestic purchasing power of its distribution, corresponding to the local currency but also because people need in their domestic currency with purchasing power. Therefore, the decision of the two currencies should be based on the purchasing power represented by the two currencies ratio. Purchasing power parity theory of exchange rates is the most influential theory, as it is from the money point of view of the basic functions of the currency exchange rate, logical,UGG Boots, concise expression, and analysis in the calculation of the equilibrium exchange rate is widely used when the exchange rate, China's exchange costs that is the practical application of purchasing power parity. Psychological exchange that is the University of Paris by the French in 1927, Professor Albert Ave Ta Liang marginal utility theory of value based on the idea put forward. He believes that the exchange rate depends on the foreign exchange supply and demand, but not because of personal reason need foreign currency purchasing power itself, but because of personal goods and services of a foreign desire. This desire is again determined by the individual's subjective evaluation, just as commodities exchange, for each has a different marginal utility. Therefore, the decision to exchange supply and demand determine the exchange rate and thus the most important factor is the psychological judgments of foreign exchange and forecasts. Currency analysts say that the exchange rate is caused by the imbalance between the money market, currency market imbalances caused by various factors: changes in domestic money supply, domestic and foreign interest rate changes and changes in the level of real national income at home and abroad, etc., these factors Through the national price level of exchange rate effects and the final decision. Currency analysts say is its most outstanding contribution to the real exchange rate under a floating exchange rate system, the overshoot phenomenon of a comprehensive theoretical generalization. Financial assets, financial assets that describes the decisive influence on the exchange rate of supply and demand, that a country's residents hold three assets, namely its own currency, domestic bonds and foreign bonds, the total should be equal to its total assets owned. When a change in the supply of various assets, or assets of residents of a change in demand, the original portfolio balance was broken, then people will adjust to the existing portfolio to meet their wishes holdings, to reach a new asset market equilibrium. Domestic and foreign asset holdings in the adjustment process, between domestic assets and foreign assets, the replacement will cause changes in foreign exchange supply and demand, leading to changes in foreign exchange rates. Variations (1) balance of payments. If a country's balance of payments surplus, the currency exchange rate; if a deficit, the currency exchange rate decline.

Baike card concept of the role of the exchange rate causes the exchange rate and import and export prices, exchange rates and capital outflow into the types of pricing methods of direct quotation indirect quotation method of dollar-denominated gold standard method to determine the exchange rate system and change the decision currency notes in circulation system and change the decision of the Western theory of exchange rate movements determine economic impact of a factor on the international balance of payments impact of two, on the domestic economic impact of three or four of the international economy, international financial markets for foreign exchange risk of exchange rate regimes affect the British Chinese concept of control rate: [huì lǜ] sometimes written as [huilv] English: 1. Exchange rate 2. Rate of exchange for example, a value of 100 yuan of goods, if the RMB against the U.S. dollar of 6.66, then this product in U.S. price is $ 15.02. If the dollar exchange rate rose to 7, that the U.S. dollar, devaluation, with fewer dollars to buy this product, this product in the U.S. is $ 14.29 price. So the commodity price in the U.S. market will become low. Lower commodity prices, competitiveness becomes high, sell cheap. Conversely, if the dollar fell to 6, that dollar depreciation, RMB appreciation, then this product in the U.S. market price is $ 16.67, the dollar price of this commodity becomes more expensive to buy less. Briefly put, is a unit of one currency equivalent in another currency. The reason can be the cause of national currencies compared to the formation of the relationship between the parity, because they all represent a certain magnitude of value, which is the basis of the exchange rate decision. Under the gold standard, gold-based currency. Two countries to implement the gold standard monetary unit of gold according to their respective number of parity between them to determine that the exchange rate. Such as the introduction of gold-based system, the United Kingdom provided £ 1 123.27447 grains weight, purity of 22 karat gold, that gold 113.0016 grains of pure gold; the United States provided $ 1 a weight of 25.8 grains, fineness of nine thousandths hundred, the gold content of 23.22 grains of pure gold. According to contrast the two currencies of gold, 1 pound = 4.8665 U.S. dollars, exchange rate fluctuations on this basis. In the paper money system, national bank notes issued on behalf of a metallic currency, and in light of past practice, the law

rate, also known as As the name of different countries in the world currency, currency varies, so a country's currency to the other provisions of a country's currency exchange rate to that rate. In the short term, a country's exchange rate currency exchange foreign currency in the country by the demand and supply of the decision. Foreigners to buy domestic goods in domestic investment and the use of national currencies for investment and opportunity to influence the demand for domestic currency. Local residents want to buy foreign products, foreign investment and foreign exchange speculation to affect the supply of domestic currency. In the long run, the main factors affecting the exchange rate are: the relative price levels, tariffs and quotas on domestic goods relative to foreign goods preferences and productivity.

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(2) inflation. If the inflation rate, the currency exchange rate is low. (3) interest rates. If a country's interest rates, the exchange rate high. (4) economic growth. If a country's economic growth rate is high, the currency exchange rate high. (5) fiscal deficit. If a country's huge budget deficit, its currency will fall. (6) foreign exchange reserves. If a country's foreign exchange reserves is high, then the currency will rise. (7) psychological expectations of investors. Psychological expectations of investors in the current international financial market has been particularly prominent. Psychology is that foreign exchange rate foreign exchange foreign exchange supply and demand sides of the monetary embodiment of the subjective psychological evaluation. Evaluation of high confidence and strong, the currency appreciation. This theory in the interpretation of numerous short-term or very short-term exchange rate fluctuations played a crucial role. (8) national exchange-rate policies. Economic impact of the impact of exchange rate on import and export: the exchange rate decline, can help promote exports and curb imports of the role. (Foreign exchange rate to rise, the currency exchange rate down) the impact of exchange rate on prices: the exchange rate down will cause the domestic price level increase; exchange rate appreciation played a role in inflation. The impact of capital flows, exchange rate: exchange rate on long-term capital flows was less affected. In the short term, exchange rate depreciation; capital outflow; exchange rate is conducive to capital inflows. First, the impact on the balance of payments (a) the impact on the trade balance: the impact of exchange rate on import and export: the exchange rate decline, can help promote exports and curb imports of the role. (Foreign exchange rate to rise, the currency exchange rate down) 2, the impact of exchange rate on prices: the exchange rate down will cause the domestic price level increase; exchange rate appreciation played a role in inflation. 3, the exchange rate effects on capital flows: the exchange rate on long-term capital flows was less affected. In the short term, exchange rate depreciation; capital outflow; exchange rate is conducive to capital inflows. (Ii) the impact of a non-trade balance, trade balance effects of the invisible: a country's currency fell, foreign currency purchasing power, but cheap goods and services. Reduce the purchasing power of local currency, foreign goods and services become more expensive, will help the tourism and other services to improve the balance of payments. 2, unilateral transfers of income effects: a country's currency exchange rate down, if domestic prices remain unchanged or rise is relatively slow, the country's unilateral transfer payments have a negative impact. 3, into the impact of capital outflows: the exchange rate less impact on long-term capital flows. In the short term, exchange rate depreciation; capital outflow; exchange rate is conducive to capital inflows. 4, the impact of official reserves: ① changes in national currency through capital transfers and changes in import trade, direct impact on the country's foreign exchange reserves increased or decreased. ② reserve currency fell, the reserve currency country's foreign exchange reserves to maintain the real value of losses due to currency depreciation reserve to reduce the national debt burden, make a profit. Second, the impact on the domestic economy (a) of the impact of a domestic price, exchange rate changes through changes in prices of imported goods 2, after exchange rate changes, such as devaluation of foreign, as a prize into the limits on export advantage, disadvantage relative to imports, other factors do not changed circumstances, the supply of goods to the domestic market tensions, the price tends to rise. 3, the exchange rate changes, such as devaluation of foreign currency, increased exports, reduced imports, the trade deficit as well as to reduce the trade surplus increased, leading to the country will increase the money supply, other things being equal, the push prices up. 4, for the currency exchange countries, such as the appreciation of the currency against foreign currencies have a tendency to make large foreign capital inflows, to obtain the interest rate, failure to take necessary control measures also contributed to the country's inflation. (B) of the national income, employment and the impact of resource allocation: the currency devaluation, which will help export import restrictions, limited production resources to export industries, import substitution industries, to promote increased national income, employment increase, thereby changing the structure of domestic production. Third, the impact of an international economic and exchange rate instability, deepening the struggle against national competition for sales markets, affect the normal development of international trade. 2, the impact of certain reserve currency status and role in promoting the formation of an international reserve currency diversification. 3, increasing speculation and turmoil in international financial markets, while promoting international financial business innovation. Fourth, the impact of international financial markets 1, some major changes in the exchange rate directly affects the state of international foreign exchange market currency exchange rate changes on the other, the international financial turmoil. 2, due to frequent changes in exchange rates, increased foreign exchange risk, foreign exchange speculation increased, which increased the international financial market turbulence. 3, exchange rate fluctuations, especially the major reserve currency of exchange rate changes, the impact of capital on international financial markets, foreign exchange risk lending activities (a) Exchange rate risk: also known as foreign exchange risk, refers to the possession or use of foreign economic entities of economic activity, due to exchange rate changes and the possibility of loss. (B) the types of foreign exchange risk: transaction risk, conversion risk, economic risk. 1 transaction exchange rate risk, the use of foreign currency-denominated payment transactions, the main result of economic changes in foreign exchange rates have suffered losses. Transaction risk occurs mainly in the following situations: (1) import and export of goods and services and the risk of the transaction. (2) Capital input and output risks. (3) foreign exchange positions held by foreign banks risk. (2) the risk of exchange rates, also known as the accounting risk, refers to the economic entities on the balance sheet accounting treatment, the functional currency into the currency of account, because of exchange rate changes resulting book losses. Functional currency refers to the economic and business activities in the main flow of the use of various currencies. Currency of account in preparing the consolidated financial statements refers to the use of the reporting currency, usually the domestic currency. 3 Economic exchange rate risk, also known as business risk, refers to the unexpected changes in exchange rates affect production and sales by volume, price, cost, causing a certain period of the company's future earnings or cash flow to reduce a potential loss. Exchange rate regime exchange rate system, also known as exchange rate arrangements (Exchange Rate Arrangement): is widely used by countries to determine their own currency and other currency exchange rates system. For countries or the international community is determined to maintain, adjust the exchange rate and management principles, methods, means and institutions made the system requirements. Exchange rate system of national exchange-rate decisions have a significant impact. Review and understand the exchange rate system, can give us the international exchange rate fluctuations on financial markets, a deeper understanding. According to the size of the exchange rate fluctuation, exchange rate regime can be divided into a fixed exchange rate system and the floating exchange rate system. Fixed exchange rate system (fixed exchange rate system) refers to the gold-based currency itself or statutory basis for determining the exchange rate, exchange rate of a relatively stable exchange rate system. In a different currency system with a different fixed exchange rate system. Floating exchange rate system (floating exchange rate system) means a country does not require currency and foreign currency exchange rate fluctuations in the gold parity and the boundaries, the monetary authorities no longer bear the obligation to maintain the boundaries of exchange rate fluctuations, exchange rate changes with the foreign exchange market supply and demand and free a floating exchange rate system from top to bottom. The system has long existed in history, but really popular in 1972 as the center of the U.S. dollar after the collapse of fixed exchange rate system. International monetary system, international gold standard, the gold exchange standard, Bretton Woods system, Triffin dilemma, SDR, Jamaica monetary system, the European Monetary System, European Monetary exchange rate regime, fixed exchange rate, floating exchange rate, adjustable fixed exchange rate, a managed floating exchange rate, pegged exchange rate, dollarization, exchange rate target zone system. International monetary system: is to meet the needs of international trade and international payments, governments of money to play in the international monetary functions of the world by the principles, measures and established organizations. It is the international monetary system, international financial institutions and by the habits and history of the convention, the sum of the international monetary order. International gold standard: based on a certain weight and fineness of gold-based currency, and establish a circulation of currency and gold exchange relationship between the fixed currency regime. Its characteristics are: bank notes convertible gold; gold free casting; gold free input and output; full use of gold currency reserves; international settlement with gold. Bretton Woods system: a man-made international monetary system, the core content of the dollar pegged to gold, other currencies are pegged to the dollar. Triffin dilemma: In order to meet the world's economic growth on the international means of payment and reserve money growth needs, the supply of U.S. dollar should continue to grow; and growing supply of dollars, will the dollar's convertibility with gold increasingly difficult to maintain. Dollars of such a dilemma, pointing out the inherent instability of the Bretton Woods system and the inevitability of crisis. Jamaica agreements: a new international monetary system to form the basis, the core idea is: diverse exchange rate arrangements, non-monetary gold, the international reserve diversification, diversification of the international balance of payments adjustment mechanism. Fixed exchange rate system: refers to a government to domestic currency and foreign currency exchange ratio to the statutory form of fixed exchange rate volatility and less restricted in scope. Floating exchange rate system: refers to the exchange rate from parity constraints, mainly market-based, self-regulation by the market exchange rate mechanism, the government neither provides domestic currency and foreign currency exchange ratio, not limited to exchange rate fluctuations. Adjustable peg exchange rate regime: the government is pre-determined, public commitment, and use methods of intervention in the market and get the national currency and a (or some) major foreign currencies and allowing the legal parity rate of exchange rate fluctuations, but can statutory parity periodically adjusted to take advantage of currency devaluation or revaluation to correct the imbalance of international payments, which is based on the Bretton Woods system established by an international exchange rate system. A managed floating exchange rate: long-term exchange rate movements against the impact of government administration is determined by market supply and demand, but short-term fluctuations in the exchange rate intervention by monetary authorities to influence; also known as dirty float. English-Chinese tend to be biased bearishly bear break down when breaking buy a dip to buy / bargain hunters buying buying cap (trend) blocked consolidation consolidation constrain restrictions cover open daily chart on chart (and so) fresh option plays the new Option buyers GMT Greenwich Mean Time high high h range-hour interval initial support of the initial support level intraday days intact and effective Japanese accounts in Japan account keep (stop) set (stop bit) large stops huge long stop plate Ldn London long low minor probe slightly low (break in, etc.) o / n overnight overbuy overbought oversell oversold paring currency / exchange rate / dollar position positions rally rally resistance resistance levels retracement retracement of the rise rising lows low rise round from oversold territory leave oversold rallies to sell into strength strategy to sell short short shorts are in play from overnight stay has been short since last night inside spot rate in the spot exchange rate, spot exchange rates covering stall consolidation square random stochastic indicator stop stop stop bit stop out strike breaking loss to leave the target bit support support level target test test test test lower at lower price forward exchange rate forward rate Outright forward exchange rate directly open forward exchange rate Swaps Swap categories: economic, financial, foreign exchange, capital flows, financial and Financial Management

currency exchange rate

notes that the provisions of the gold content, known as the gold parity, the contrast is the gold parity of the exchange rate between the two countries basis of decisions. But the notes can not be converted into gold, so gold is often ineffective legal notes. Therefore, countries in the implementation of the official exchange rate by the national monetary authorities (the Ministry of Finance, the central bank or foreign exchange control authority) provides the exchange rate, all foreign exchange transactions must be in accordance with the exchange rate. Countries in the implementation of market exchange rates, currency exchange rates on the foreign exchange market with supply and demand changes. Exchange rate on the balance of payments, national income and so have an impact. Role of the exchange rate and import and export in general, the currency exchange rate lower, which is the ratio of foreign currency to belittle, to help promote exports and inhibit imports of role; if the currency exchange rate, which increased the ratio of foreign currency, it will help the import is not conducive to exports. Exchange rate and prices of imported consumer goods and raw materials from the point of view, the exchange rate to cause a decline in imports in the domestic prices. The price index of its degree of impact depends on imported goods and raw materials in the GDP share. On the contrary, the currency appreciation, other things being equal, the price of imports may be reduced, thus inhibiting the general price level can play the role. Exchange rate and short-term capital flows, capital inflows and outflows are often subject to greater exchange rate impact. When there is depreciation of the currency trend of foreign, domestic and foreign investors reluctant to hold on to a variety of local currency-denominated financial assets, and will turn them into foreign currency exchange, the occurrence of capital outflows. Meanwhile, have turned against the foreign exchange, increased foreign exchange demand, the currency exchange rate will lead to further decline. Conversely, when there is a trend appreciation of foreign currency, the domestic and foreign investors sought to hold on to a variety of local currency-denominated financial assets, and lead to capital inflow. Meanwhile, foreign exchange have to turn against the local currency, foreign exchange surplus, the currency exchange rate will lead to a further rise. Type (1) according to the evolution of division of the international monetary system, a fixed exchange rate and a fixed exchange rate floating exchange rate ①. Is developed and published by the Government, and only within a certain range of fluctuations in exchange rates. ② floating exchange rate. Refers to the relationship between supply and demand by the market-determined exchange rate. The fluctuation fundamental freedoms, a country's currency market, in principle, no obligation to maintain the exchange rate, but if necessary, to intervene. (2) divided by development of the exchange rate method, a basic rate and Cross Rates ① basic rate. Exchange rate in developing countries must choose a target country's currency as the main comparison, the currency is called the key currency. According to their national currency with the actual value of key currencies contrast, it worked out the exchange rate, this rate is the basic rate. U.S. dollar is generally used in international payments more money, every country to develop the exchange rate U.S. dollar as the main currency, often against the U.S. dollar as the basic rate. ② Cross Rates. Refers to the countries in accordance with the basic exchange rate against the U.S. dollar set a direct reflection of other currencies calculated the ratio between the value of the exchange rate. (3) according to the angle of bank foreign exchange trading division, with buying rate, selling rate, the middle exchange rate and buying rate cash rate ①. Also known as purchase price, the exchange rate that