Currency for international travel and cross-border payments is predominantly purchased from banks, foreign … See more

There is a market convention that rules the notation used to communicate the fixed and variable currencies in a quotation. For example, in a conversion from EUR to AUD, EUR is the fixed currency, AUD is the variable cur… See more

Countries are free to choose which type of exchange rate regime they will apply to their currency. The main types of exchange rate regimes are: free-floating, pegged (fixed), or a hybrid.
In free-float… See more

From the perspective of bank foreign exchange trading
• Buying rate: Also known as the purchase price, it is the price used by the foreign exchange bank to buy foreign currency from the cu… See more

1. Balance of payments: When a country has a large international balance of payments deficit or trade deficit, it means that its foreign exchange earnings are less than foreign exchange expenditures and its demand fo… See more

A market-based exchange rate will change whenever the values of either of the two component currencies change. A currency becomes more valuable whenever demand for it is greater than the available supply. It will becom… See more