1 / 2

Understanding Foreign Exchange (FOREX) Cover and Base Rates

Learn about the IB Spot Rate, Cover Rate, and Base Rate in foreign exchange transactions. Discover how these rates impact merchant transactions and form the basis for computations in the IB market.

rane
Download Presentation

Understanding Foreign Exchange (FOREX) Cover and Base Rates

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Foreign Exchange FOREX

  2. 11. Cover Rate : It is IB Spot Rate at which merchant transaction is covered in the IB market. That means if Bank Buys $ from customer in merchant transaction the cover transaction would be to Sell $ in IB market. Base Rate : It is an IB Spot rate (ongoing) which forms the basis for computation of merchant. In Exam unless Specifically mentioned Cover Rate and Base Rate are same and both represent IB Spot Rate.

More Related