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    738 Lavanya Jadhav
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    The document discusses different types of foreign exchange rates, including spot rates, forward rates, futures contract rates, and long rates. It also covers fixed exchange rates, flexible/floating exchange rates, and managed floating exchange rate systems. Multiple exchange rate systems are described, including two-tier rate systems that have different rates for commercial and capital transactions.

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    The document discusses different types of foreign exchange rates, including spot rates, forward rates, futures contract rates, and long rates. It also covers fixed exchange rates, flexible/floating exchange rates, and managed floating exchange rate systems. Multiple exchange rate systems are described, including two-tier rate systems that have different rates for commercial and capital transactions.

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    © All Rights Reserved
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    5 views5 pages

    731 If

    Uploaded by

    738 Lavanya Jadhav
    The document discusses different types of foreign exchange rates, including spot rates, forward rates, futures contract rates, and long rates. It also covers fixed exchange rates, flexible/floating exchange rates, and managed floating exchange rate systems. Multiple exchange rate systems are described, including two-tier rate systems that have different rates for commercial and capital transactions.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 5

    TYPES OF FOREIGN EXCHANGE RATES

    SPOT
    TWO TIER RATE
    RATE FIXED
    SYSTEM RATE

    TYPES OF
    MULTIPLE FOREIGN LONG
    RATES EXCHANGE RATE
    RATES

    MANAGED
    FLOATING FIXED
    RATE RATE
    FLEXIBLE
    RATE
    CABLE
    SPOT RATE
    RATE
    FORWARD
    TELEGRAP RATE
    HIC
    TRANSFER

    FUTURE
    CONTRACT IS
    MADE

    DATE TO DAY RATE OF


    EXCHANGE
    QUOTED AT
    PREMIUM OR
    QUOTED DIFFERENTLY FOR
    BUYERS AND SELLERS DISCOUNT ON

    THE DIFFERENCE IS
    SREAD/ MARGIN
    Long Rate
    purchase sell

    Credit Purchase Credit Sale

    premium

    spot rate premium


    Long
    Long rate
    Rate
    Spot rate
    Fixed Rate/ Pegged Flexible rate/
    Rate Floating Rate

    Rate of exchange is fixed Rate of exchange is


    determined by demand and
    supply forces.

    Managed Floating Rate System

    • FER is determined by market forces


    • Hybrid of fixed and flexible exchange rate system
    • Central bank restricts the fluctuations
    MULTIPLE RATES
    • Country adopts more than one rate.

    Different
    • Different exchange rates are fixed for importers exporters
    countries

    • TWO TIER RATE SYSTEM


    • Form of multiple rate system
    Commercial
    Higher rate transaction
    country
    Capital
    Lower rate
    transaction

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