(1) T/T exchange rate. The telegraph exchange rate is the exchange rate at which domestic banks engaged in foreign exchange business entrust their overseas branches or correspondent banks to pay the payee by telegraph after selling foreign exchange. Due to the high speed of telegraphic transfer payment, the bank can't occupy the customer's capital position, and the international telegraph fee is high, so the telegraphic transfer exchange rate is higher than the general exchange rate. The rapid transfer of funds by telegraphic transfer is conducive to accelerating international capital turnover, so telegraphic transfer accounts for an overwhelming proportion in foreign exchange transactions.
(2) remittance exchange rate. Remittance exchange rate is the exchange rate used by the bank to issue a payment order and send it to the paying bank through the post office for transfer to the payee. Because it takes a certain time to send payment instructions, banks can occupy customers' funds during this time, so the exchange rate of letter transfer is lower than that of wire transfer.
(3) the exchange rate of foreign exchange. The exchange rate of bill exchange refers to the exchange rate used when a bank opens a bill paid by its foreign branch or agent, gives it to the remitter, and the remitter carries it with him or sends it abroad for withdrawal. Because there is a time interval between selling and paying foreign exchange, banks can occupy customers' positions during this time, so the exchange rate of foreign exchange is generally lower than that of telegraphic transfer. There are short-term bills and long-term bills, and their exchange rates are also different. Because banks can use customers' funds for a longer time, the exchange rate of long-term bills is lower than that of short-term bills.