• What you need to know about the currency before you go to the bank?

    Ivan Orlov
    Ivan Orlov
    August 16, 2017
    What you need to know about the currency before you go to the bank?

    Surely everyone faced with the announcements of financial organizations about the sale and purchase of currency. However, the proposals for the cost differed and sometimes by several percent.

    To understand where the difference in exchange rates comes from, one should know about their types and classification.

    Types of exchange rates

    There are several types of exchange rates, writes Minfin.com.ua, each of which has its own purpose.

    So, a fixed rate is set at the level of legislation. It is laid in the budget of the country for a certain period. On the basis of this indicator, economic forecasts are made.

    Floating rate sets the currency exchange. It may change several times a day. In the case of the Russian Federation, the Central Bank is responsible for the exchange rate.

    The cross rate is needed to calculate the ratio of two currencies based on the third indicator.Most often, the third type of currency is the American dollar. The formation of cross-rate allows you to understand how the currency rate was adjusted for a certain period of time.

    The current rate is used in a specific period of time for the sale of foreign currency in exchange for a national one. Most often it changes daily.

    Turning to the exchange office, the owner of the money is faced with the rate of sale. To exchange foreign money for the national currency, you should focus on the indicator in the column "sale". To get dollars or other foreign currency in exchange for national, you should be guided by the values ​​in the column "purchase".

    Classification by exchange method

    There is also another currency classification.

    • freely convertible can exchange if necessary. Such a currency does not have a high rate, which means it cannot greatly affect the state of the economy on a national scale;
    • partially convertible. It is appreciated because too active turnover can cause an economic crisis. The state imposes restrictions on the conduct of foreign exchange transactions in order to avoid negative consequences;
    • non-convertible, adversely affecting the country's economy. This type of currency can not be exchanged for banknotes of another state.

    The owner of funds can make the following currency operations:

    • exchange it at the established rate;
    • take a foreign currency loan, payments on which will be calculated on the basis of the rate;
    • to make calculations on currency transactions.

    Knowledge of currency will allow you to avoid difficult situations when you need to exchange or other operations with cash.

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