BBA, Sem-2, Fundamentals of Foreign Exchange Management, Unit-3, Foreign exchange, 19.05.2021

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2 FOREIGN EXCHANGE www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

3 CONTENT • Meaning of foreign exchange rates • Determinants of foreign exchange rates • Types of exchange rates www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

MEANING OF FOREX RATES 4 A foreign exchange rate is the price of the domestic currency stated in terms of another currency. The foreign exchange rate also plays a role in recording some business events between multi-national businesses. A foreign exchange rate compares one currency with another to show their relative values. Since standardized currencies around the world float in value with demand, supply, and consumer confidence, their values change relative to each over time www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

DETERMINANTS OF FOREX RATES 5 www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

TYPES OF FOREX RATES 6 Fixed Exchange Rate System Flexible Exchange Rate System Managed Floating Rate System www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

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