Interbank Exchange Rate
The current price or rate at which banks exchange a given currency pair with each other.
The interbank exchange rate is the average rate at which banks around the world are buying and selling any given currency at any given time. Interbank rates, also known as market rates, are the official live conversion rates for a given currency pair, and are continually fluctuating every second of the day.
What rate is the ‘real’ exchange rate?
hen people talk of a ‘real exchange rate’, what they are normally referring to is so-called wholesale rates, made up of the interbank rate plus a mark-up fee. Examples of companies that offer wholesale rates include CurrencyCloud, MasterCard and Visa.Practical Application Example
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At the time of this being written, the bid price for the Euro – using the British pound as the base currency – was 1.1343, compared to an ask price of 1.1346. ”
