The simultaneous selling of one currency and buying of another. The purchasing power of a domestic currency in another country.Īn administratively fixed exchange rate not based upon market conditions.Īn exchange rate determined by market forces without central bank intervention. The value of one currency expressed in another currency. Governmental control of the movement of its currency with foreign entities. The reduction of the external value of a currency based upon changes in monetary policy or the current economic or political environment. For example, in a USD/CHF trade of 1,000,000 USD, the US dollar is the dealt currency and the CHF (Swiss Franc) is the contra currency. In a forex trade, the currency that specifies the unit of the trade. Two currencies that constitute a foreign exchange rate: the base currency and the counter currency. Examples include the US dollar, Swiss franc, and European Euro. The system of money in general use in a country or currency zone. Credit card rates vary by issuer of the credit card, but are typically a premium of 2−5% above the Spot Exchange Rate.Īn exchange rate between two currencies expressed in reference to a third currency, typically the US dollar. The foreign exchange rate offered by a credit card company for transactions in a foreign currency using their credit card. The ease with which a currency can be freely exchanged or converted into another currency. For example, in a USD/CHF trade the US dollar is the dealt currency and the CHF (Swiss Franc) is the contra currency. In a forex trade, the currency for which the dealt currency is traded. The national bank of a sovereign state that provides financial and banking services to its government and commercial banking system, implements monetary policy, and issues currency. The second named currency in a currency pair. Money loaned by a financial institution on a very short-term basis which can be called the same day or at one or two days’ notice.Īn option to sell a commodity or asset (currency) at an agreed-upon price on or before a particular date. The price at which a market is willing to purchase. The first named currency in a currency pair. This rate takes into account the added costs of transport and insurance. The rate used for foreign exchange transactions involving physical banknotes. The price at which a market is willing to sell. Simultaneous buying and selling of securities, commodities, or currencies in different markets to take advantage of price differences. United Arab Emirates Embassies and Consulates Abroad.International Embassies and Consulates in United Arab Emirates.

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