Difference between revisions of "Foreign Exchange Fee"

From Open Risk Manual
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== Definition ==
 
== Definition ==
'''Foreign Exchange Fee'''. They are the charges to mark up to the mid-market (also known as interbank) rate. The midpoint between the purchase and the sale prices of the two currencies on the global currency markets determines this rate. Providers that process FX payments often add a high commission to this rate in order to make a margin from the transaction and cover its risks. Fees may also be added when a transaction has to pass through multiple correspondent financial institutions to reach the recipient.
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'''Foreign Exchange Fee'''. They are the charges to mark up to the mid-market (also known as interbank) rate.  
  
[[Category:Supply Chain Finance]]
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The midpoint between the purchase and the sale prices of the two currencies on the global currency markets determines this rate. Providers that process FX payments often add a high commission to this rate in order to make a margin from the transaction and cover its risks. Fees may also be added when a transaction has to pass through multiple correspondent financial institutions to reach the recipient.
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[[Category:Products and Markets]]

Latest revision as of 14:06, 13 February 2020

Definition

Foreign Exchange Fee. They are the charges to mark up to the mid-market (also known as interbank) rate.

The midpoint between the purchase and the sale prices of the two currencies on the global currency markets determines this rate. Providers that process FX payments often add a high commission to this rate in order to make a margin from the transaction and cover its risks. Fees may also be added when a transaction has to pass through multiple correspondent financial institutions to reach the recipient.

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