Foreign Exchange Rates

Spot Exchange Transactions is buying one currency with a different currency for immediate delivery, rather than for future delivery.

Spot Exchange Transactionsis the purchase or sale of foreign currencies for spot delivery. Spot is defined as value 2 working days from the date of a transaction. Transactions can also be done for delivery on the same day or next day depending on the customer’s needs and depending on the market situation. Spot Exchange Transactions are offered in all major currencies and many minor currencies.

The standard settlement timeframe for Foreign Exchange Spot trades is T+2 days; i.e., 2 days from the date of trade execution. A notable exception is the USD/CAD currency pair which settles T+1.

Characteristics

·Spot Transaction of Foreign Exchange refers to the foreign exchange transaction settled on the second bank working day after the foreign exchange transaction has been concluded. The settlement day is the value date. The value date will be postponed if it falls out of the bank working day or during the holidays. The rate of Spot Transaction of Foreign Exchange is called Spot Rate.

·The Bank of China can conduct foreign exchange dealings concluded on the same day with interest being calculated or dealings concluded on the same day with the interest being calculated on the next day.

Spot Exchange Transactions Medthods

1. favourable exchange

2. Adverse exchange

Spot Exchange Transactions Terminology

1.value

2.Business Day

3.Dealer

4.Quote

5.point