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Ca final sfm forex

Shobhit Jain (CA) (4892 Points)

22 April 2018

For eg-1$=₹65/₹67

When bank buy foreign currency($) from open market, at what price it will be available to bank?

And if bank buy from individual,what will be price?

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4 Replies

A.Kishore Kesav (807 Points)
Replied 22 April 2018

At the last quoted price at the end of the last financial year i.e. for eg: If such trade was made in FY17-18 then such value of the dollar will be taken at the date 31.03.2017

Divakar (Student CA Final ) (11857 Points)
Replied 23 April 2018

1 $=Rs. 65/67....that is bid and ask rate of bank.... If anyone want to sell that dollar to bank then bank gives Rs. 65 for 1 dollar...... And if anyone want to buy 1 dollar from bank then he have to pay Rs. 67......bank ask rate quotation is always higher than its bid rate... Hope now u understand that

sunny (ca ) (58 Points)
Replied 22 April 2018

Bank will buy $ from any person (individual) who have some $ from trade (export) etc,, bank will pay ₹65 for every $. And on what price bank will buy it in open market like from other bank or etc... Dont know?? I think it will be there internal matter, they dont disclose it...

Parminder Singh (744 Points)
Replied 25 April 2018

Divakar here there is a possibility of inter bank transaction. Both buyer and seller can be a bank in case of open market. then what will be the rates?