What are Exchange Operations?
Exchange is the operation of exchanging one currency for another (for example,
exchanging the rand for the metical; the dollar for the metical; the euro for
the pound among other currencies).
The exchange rate is the price at which this exchange is made, that is, the value of a currency in monetary units of another currency, on the other hand, the exchange rate translates the relative price of the currencies, indicating the amount of currency that is possible to buy [or sell] by selling [or buying] a unit of another currency (base currency).
Exchange rate types
Two types of exchange rate differ, namely:- Absolutely – refers to the number of units of foreign currency needed to acquire one unit of national currency;
- Uncertain – is the number of units of national currency needed to acquire one unit of foreign currency.
In general, exchange rates are published "for sure", indicating how much is
worth in foreign currency in relation to the national currency.
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