In the time past, a cross-rate was any currency pair that did not
include your home currency. The US dollar/Japanese yen exchange rate would be a
cross-rate for someone in the UK or Europe, for example.
Today,
however, the common definition of a cross-rate is any currency pair that does
not include the dollar. Therefore, the USD/JPY exchange rate is a “major”
exchange rate and not seen as a cross-rate by people in the UK or Europe, while
the AUD/CAD would be seen as a cross-rate by everyone, including Australians
and Canadians, even though the rate includes their home currencies.
This convention
for defining a cross-rate is not accepted everywhere and you will see lists in
newspapers and websites that define cross-rates differently. The US dollar
accounts for about 70% of global government money reserves and 70% of world
trade, so placing the dollar as a component in all the major exchange rates is
not without justification. In fact, there are more dollars in banknotes and
bank deposit accounts outside the US than inside the US, so it may be accurate
to say the dollar is the most-used currency in some places even though it is
not the home currency.
Thank you for sharing this guide. Several traders really don’t want to pay the taxes. That’s why they hide their money and start money laundering, which is strictly considered a crime globally. It is the same reason for banning cryptocurrency in Pakistan. Also can you tell us what things are necessary to understand before starting forex trading in Pakistan
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i am from India, if any one want foreign exchange in India please contact me
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