What is the exchange rate of currency? MICEX and BVFB

Monetary signs of a foreign state are the currency.

The market where currency transactions are realized at the exchange rate is called the currency exchange rate.

The organized market, where the sale of currency is carried out, is called the currency exchange.

Moscow Interbank Currency Exchange is the largest in Russia.

The Belarusian Currency and Stock Exchange operates in Belarus.

What is the exchange rate of currency? This is the exchange rate, which is set at the auction on the exchange.

Currency

It is bought and sold in the foreign exchange market, it can be in the bank account, and used for international settlements.

The currency is free, partially convertible and non-convertible.

Convertibility is the exchange possibility of national currency for foreign currency. Convertibility happens:

• External - in which non-residents of the state can buy or sell foreign currency;
• Internal - in which this possibility applies only to residents.

Freely convertible is a currency for which there are no restrictions in the field of legislation to make any currency transactions for residents and non-residents.

Partially convertible is the currency of states where there are any restrictions on its quantity or a special procedure regulating and permitting a certain type of exchange operations for different entities.

Non-convertible currency (closed) is a currency whose state law restricts virtually all transactions.

Currency market

The foreign exchange market consists of a large number of different financial institutions, including large banks, which are interconnected by modern means of communication for currency trading.

Thus, the foreign exchange market is not some specific place where currency sellers and their buyers are going. Here, dealers communicate with each other. Each computer reflects the quotes for the major currencies traded by banks. The Bank can freely buy or sell the currency on its own or on behalf of the client.

Since 1992, Russians have been granted the right to open bank accounts in foreign currency. The exchange rate was pegged to the dollar, and later to the euro.

Currency trading is carried out by exchange and over-the-counter instruments.

Currency exchanges

The exchange market is an organized market of currencies, which has the cheapest currency with liquid bids put up for auction.

The last chapter will consider what is the exchange rate of the currency.

Liquidity of a currency means its ability to turn into money quickly and without loss.

In comparison with OTC, the exchange market has a number of advantages. It:

1. Equality of entities that sell and buy currency through intermediary banks. Applications, regardless of the amount are held at the same rate.

2. The benchmark for government courses are the informal exchange rates of currencies.

3. Foreign exchange interventions, like other ways of regulating exchange rates on the exchange, are more affordable and less expensive than in the international currency market. The central bank here can intervene in the course of trading to manage the course during the crisis. This effect on the exchange rates of currencies in Russia, the Russians are watching in this period of instability.

4. Technical and legal standards when conducting currency transactions.

5. Transparency and thus obtaining the opportunity to conclude deals on the optimal quotation.

6. Currency risks are minimized, and settlements on transactions are guaranteed.

Moscow Interbank Currency Exchange (MICEX)

The largest currency exchange in Russia is the MICEX.

The Moscow stock exchange is an exchange that is licensed by the Central Bank of the Russian Federation, which allows it to organize currency purchase and sale transactions for rubles and settle transactions.

The main task of the exchange is to create the necessary conditions for the work of the interbank foreign exchange market.

Trades are held every day, except on Saturdays and Sundays. Operations are carried out through dealers who can not conduct them themselves and at their own expense.

The auction is conducted and the current course is determined by a MICEX employee specially authorized for this purpose - a course broker.

In the hall where the exchange trades are held, only MICEX employees and dealers can be present, as well as organizations and participants in the bidding.

The press and other organizations can be admitted to the hall only with the permission of the Exchange Directorate.

Belarusian Currency and Stock Exchange (BVFB)

BVFB - was established in 1998, but began to work practically since 1993. The controlling stake in the stock exchange belongs to the National Bank of Belarus, which is the main player regulating the exchange rate of currencies in Belarus through daily interventions.

After the trading day, the ratio of supply and demand to currencies is seen, if exceeded, the National Bank buys or sells the currency at its discretion. By the same indicators, the ruble rate of Belarus is being formed.

What is the Exchange Rate of Currency

The exchange rate is the price of a unit of money of one country, which is expressed in terms of the money of other countries. It is established in relation to the supply and demand of the currency.

However, for professionals who exchange currency at the exchange rate, there is no orientation on the concept of the exchange rate. For them, two courses have values, on which, in fact, it disintegrates. This is the course of the seller and the buyer.

Quote - the rate fixed in the national unit of money in foreign currency.

What is the exchange rate of currency? This is the exchange rate, which is set at the auction on the exchange.

All foreign exchange transactions carried out on the exchange are based on the currency convertibility to be exchanged. Unofficial exchange rates of currencies are directly dependent on buyers, as far as they are willing to implement currency exchange. And this ability is determined based on the economic situation in the issuing countries.