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 […]
How do I get Forex account replenished while the central bank of our country makes a huge restriction on foreign currency transfers?
When a country places outgoing or foreign exchange limits, a new market mushrooms literally overnight, one that expects you to pay a premium and can do exactly what the government does not want you to do. There are plenty of people in every economy who would be willing to provide such a netting off service for a […]
What do you think about a peer to peer foreign exchange platform? Is it possible to get such a robust market where peers directly exchange currencies, without a middle man? It can be an electronic or x-border exchange, requiring no physical presence.
While I believe this model will ultimately be beneficial, the truth is, there are too many bad actors to make this be reviewed and come under the umbrella of a regulatory authority. The crypto exchanges in many ways are doing this, but they are still centralized in many ways. DEX (Decentralized Exchanges) are coming up […]