May 02, 2020

Currency Rates; From Bankers' Point of View

                  Currency Rates;From Bankers' angle ' buy low  sell high'
Rate Description
Direct When foreign currency is fixed (say $) and Indian rupees are variable, In India Direct rates are quoted. When rupee appreciates its beneficial to the importer and when rupee depreciates it benefits the exporter
Indirect When foreign currency is variable and Indian rupee is kept as fixed unit
Buying When bank delivers rupees and gets foreign exchange (say in case of purchase of export bill or encashment of foreign currency travellers' cheques or receipt of remittance from abroad
Selling When bank delivers foreign currency and gets Indian rupees (say in case of payment of import bill or issue of foreign currency travellers' cheques or sending of remittance abroad
Spot It is cash or value today or immediately. TOM= T+1 that is rate today and deal completion by next day. Spot=T+2 (that is 48 hours)
Forward Deal today and delivery later on say 1,2,3,4,6,12 months afterwards. It can be at a premium or at a discount. If foreign currency will be available at a higher price ( that is for more rupees), it carries premium. If available at a lower price (say for lesser rupees), it is at a discount.

No comments:

Post a Comment

Bank Po/Clerk Practice Link OR Resources ( Top resources)

(1) TestZone( , www. AspirantsZone . (2)Www. AffairscloudZone .  (3)www. bankersaddazone .  (4)www. testbookzone .  (5)www. ...