To give you an analogy, the same difference between an Airline and its flight number. Foreign Exchange refers to a currency type. For example US Dollars, or Philippines Peso, Kenyan Shillings, etc. Foreign Exchange rate refers to the the exchange rate between two currencies. If I hand over to you 1 unit of my currency, how many units […]
When transferring money to a foreign bank in a different currency, which bank converts the currency, the sending bank or the receiving bank? Whose rates are applied?
In most cases, the currency is converted by the receiving bank. In such a scenario, the sending/receiving bank have a direct correspondent agreement and the receiving bank provides the exchange rate into the local currency and does the conversion. In the event a middle, correspondent bank is used, same result again, the receiving bank provides […]