What is the stock exchange rate? MICEX and BVSE

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The currency of a foreign state is the currency.

The market where currency transactions are carried out at the exchange rate is called the currency market.

An organized market where currency is bought and sold is called a currency exchange.

Moscow Interbank Currency Exchange is the largest in Russia.

Belarusian Currency and Stock Exchange operates in Belarus.

What is the stock exchange rate? This is the exchange rate that is set at the auction on the stock exchange.

Currency

It is bought and sold on the foreign exchange market, it can be in a bank account, and used for international settlements.

Currency is free, partially convertible and non-convertible.

Convertibility is the ability to exchange national for foreign currency. Convertibility happens:

• external - in which non-residents of the state can buy or sell foreign currency;
• internal - in which this opportunity applies only to residents.

Freely convertible is a currency for which there is norestrictions in the field of legislation to make any currency transactions for residents and non-residents.

Partially convertible is the currency of states where there are any restrictions on its quantity or a special procedure that regulates and permits a certain type of exchange transactions for different subjects.

A non-convertible currency (closed) is a currency whose laws restrict virtually all transactions.

Foreign exchange market

The foreign exchange market consists of a large number of different financial institutions, including large banks, which are interconnected by modern means of communication for foreign exchange trading.

Thus, the foreign exchange market is not a specific place where sellers of currency and its buyers gather. This is where dealers connect with each other. Each computer displays quotes for the major currencies that banks trade. The bank is free to buy or sell currency on its own or on behalf of the client.

Since 1992, Russians have gained the right to open bank accounts in foreign currency. The exchange rate was pegged to the dollar, and later to the euro.

Currency trading is carried out by exchange and over-the-counter instruments.

Currency exchanges

The exchange market is an organized currency market that has the cheapest currency with liquid bids to be traded.

The last chapter will look at what the stock exchange rate is.

The liquidity of a currency means itsthe ability to turn into money quickly and without loss.

Compared to OTC, the exchange market has a number of advantages. This is:

1. Equality of entities that sell and buy currency through intermediary banks. Applications, regardless of the amount, are carried out at the same rate.

2. The benchmark for government rates are unofficial exchange rates.

3. Currency interventions, like other ways of regulating exchange rates on the stock exchange, are more accessible and less costly than on the international currency market. The central bank here can intervene in the course of trading to manage the exchange rate during crises. Russians are seeing such an impact on exchange rates in Russia during the current period of instability.

4. Technical and legal standards for foreign exchange transactions.

5. Transparency and thus obtaining the opportunity to conclude transactions at the optimal quote.

6. Currency risks are minimized, and settlements on transactions are guaranteed.

Moscow Interbank Currency Exchange (MICEX)

The largest currency exchange in Russia is the MICEX.

The Moscow Exchange is an exchange that has a license from the Central Bank of the Russian Federation, which allows you to organize transactions for the purchase and sale of currencies for rubles and carry out settlements on transactions.

The main task of the exchange is to create the necessary conditions for the operation of the interbank foreign exchange market.

Trading is held every day except Saturday and Sunday. Operationsare carried out through dealers who cannot conduct them themselves and at their own expense.

Conducts trading and determines the current exchange rate by a specially authorized MICEX employee for this purpose - a rate broker.

Only MICEX employees and dealers, as well as organizations and participants in trading can be present in the hall where exchange trading is held.

The press and other organizations may be admitted to the hall only with the permission of the management of the exchange.

Belarusian Currency and Stock Exchange (BCSE)

BVSE - was established in 1998, but began to work almost from 1993. The controlling stake of the stock exchange belongs to the National Bank of Belarus, which is the main player regulating the stock exchange rate in Belarus through daily interventions.

After the trading day, you can see the ratio of supply and demand for currencies, above which the National Bank buys or sells the currency at its discretion. According to the same indicators, the exchange rate of the Belarusian ruble is formed.

What is the stock exchange rate

The exchange rate is the price of a unit of money of one country, which is expressed in units of money of other countries. It is set relative to the supply and demand of the currency.

However, for professionals who exchange currency at the exchange rate, there is no orientation to the concept of the exchange rate. For them, the two courses on which it actually breaks up are important. This is a seller-buyer course.

Quote -exchange rate fixed in the national unit of money in foreign currency.

What is the stock exchange rate? This is the exchange rate that is set at the auction on the stock exchange.

All currency transactions carried out on the exchange are based on the currency convertibility to be exchanged. Unofficial exchange rates are directly dependent on buyers, as far as they are willing to implement currency exchange. And this ability is determined based on the economic situation in the issuing countries.