International Business
-
What are Swap and Deposit Transactions in Foreign Exchange
A ‘swap deal’ is a transaction in which the bank buys and sells the specified foreign currency simultaneously for different…
Read More » -
Cover Deals and Arbitrage Operations in Exchange Dealings
Cover Deals : Purchase and sale of foreign currency in the market undertaken to acquire or dispose of foreign exchange…
Read More » -
What is Extension of Forward Contracts
An exporter finds that he is unable to export on the due date but expects to do so in about…
Read More » -
The Formalities to be Complied with Particular Reference to Exchange Control Regulations
While booking forward contracts for customers, banks are required to observe that the exchange control regulations are complied with. The…
Read More » -
How Forward Rates are Calculated in Foreign Exchange
The method of calculation of forward rates is similar to that for spot rates. The only difference is that in…
Read More » -
What are Fixed and Option Forward Contracts
Fixed and option forward: A fixed contract is one where the parties agree on the amount and the rate at…
Read More » -
4 Factors that Determine Forward Margin in Exchange Rates
When an exporter quotes his price to the importer, he bases his calculations on his cost of production and the…
Read More » -
How Ready Rates are Calculated on the Basis of Cross Rates for Currencies
Calculation of Ready Rates:Â Buying Rates. Let us call the currency (other than US dollar) for which the exchange rate is…
Read More » -
What are Cross Rates and Chain Rule
India, buying rates are calculated on the assumption that the foreign exchange acquired is disposed of abroad in the international…
Read More » -
How to Interpret the Quotations in International Markets both Spot and Forward
Exchange rates in international markets:Â In international markets, all rates are quoted in terms of US dollar. For instance, at…
Read More »
