I. Definition and influencing factors of exchange rate
The exchange rate is the ratio of the relative values of two currencies. Fluctuate due to the relationship between market supply and demand and economic factors (such as interest rate, inflation rate, policy, etc.). The exchange rates of different countries' currencies are constantly changing every day.
Second, the calculation of the actual exchange amount
The actual converted amount refers to the final monetary amount obtained after conversion. It is equal to the amount of base currency to be converted multiplied by the exchange rate. For example, 100 USD needs to be converted into RMB, and the exchange rate is 6.5, then the actual converted amount is 100*6.5=650 RMB.
Third, the calculation formula of exchange cost
The conversion cost can be determined by calculating the difference between the actual conversion amount before and after conversion. The calculation formula of exchange cost is: exchange cost = actual exchange amount before exchange-actual exchange amount after exchange.
Suppose that 1000 euro needs to be converted into US dollars, the exchange rate before conversion is 1 euro pair 1.2 US dollars, and the converted exchange rate is 1 euro pair1. Calculate the conversion cost according to the formula: the actual conversion amount before conversion =1000 *1.2 =1200 USD, and the actual conversion amount after conversion =1000 *1/kloc-0.
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I. Exchange rate types and calculation methods
Exchange rate can be divided into real-time exchange rate and spot exchange rate. The real-time exchange rate is the exchange rate determined according to the real-time market supply and demand, while the spot exchange rate is the fixed exchange rate determined in the transaction process.
In most cases, we use real-time exchange rates. The calculation method of exchange rate can be direct quotation method, indirect quotation method or cross quotation method, and the exchange rate can be calculated according to different usage scenarios and relative positions.
Second, exchange service fees.
In the actual foreign exchange, financial institutions usually charge a certain exchange service fee. This fee can be a certain percentage of the handling fee or a fixed amount. The exchange cost can be calculated by subtracting the exchange service fee from the actual exchange amount to consider the influence of the service fee.
Third, deal with the risk of exchange rate fluctuations.
Due to exchange rate fluctuations, exchange costs may also be affected. For enterprises and individuals, some hedging strategies can be adopted, such as setting up foreign exchange reserves and using forward foreign exchange contracts or currency swap contracts to manage exchange rate risks.