Tuesday 16 December 2014

What is known as an Exchange Rate Spread?



The difference between the bank-buying rate and the bank selling rate is known as the Exchange Rate Spread, which remains almost constant. When you maintain the exchange rate spread, it is sufficient if you maintain the average rate for that currency in question in the system as you will be able to deduce the buying/selling rate by adding/subtracting the spread to/from the average rate.

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