Louvre Accord

The Louvre Accord (formally, the Statement of the G6 Finance Ministers and Central Bank Governors)[1] was an agreement, signed on February 22, 1987, in Paris, that aimed to stabilize international currency markets and halt the continued decline of the US dollar after 1985 following the Plaza Accord.[1] It was considered, from a relational international contract viewpoint, as a rational compromise solution between two ideal-type extremes of international monetary regimes: the perfectly flexible and the perfectly fixed exchange rates.[2] Continue reading “Louvre Accord”

Non deliverable forward

In finance, a non-deliverable forward (NDF) is an outright forward or futures contract in which counterparties settle the difference between the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount. It is used in various markets such as foreign exchange and commodities. NDFs are also known as forward contracts for differences (FCD) [1]. NDFs are prevalent in some countries where forward FX trading has been banned by the government (usually as a means to prevent exchange rate volatility). Continue reading “Non deliverable forward”

Moving average rate procedure

The moving average rate procedure[1] is a proven procedure within development cooperation to convert locally used currency of the projects (voucher currency) to the currency used at the head office (company currency). This procedure prevents any profits or losses resulting from fluctuating exchange rates. It allows to fully translate the countervalue of all funds given to the project to costs. Continue reading “Moving average rate procedure”

Multi currency pricing

Multi-currency pricing (MCP) is a financial service which allows businesses to price goods and services in a variety of foreign currencies, while continuing to receive settlement and reporting in their home currency. With MCP, merchants can sell the same item to British customers in pounds sterling, French and German customers in Euros, and Japanese customers in Yen. A sales tool that helps merchants expand into other sectors of the global marketplace, MCP allows cardholders to shop, view prices and pay in the currency of their choice. Currently this feature is available for Visa and MasterCard networks only. Continue reading “Multi currency pricing”

Ripple (payment protocol)

Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes.[2] Ripple purports to enable “secure, instantly and nearly free global financial transactions of any size with no chargebacks.” Continue reading “Ripple (payment protocol)”

Midpoint (company)

Midpoint (Midpoint Holdings Ltd) is a UK headquartered, Toronto and Frankfurt listed company providing international payments and peer-to-peer foreign exchange (bureau de change) services to individual and corporate customers.[3][4][5] Midpoint is the world’s first dedicated peer to peer international foreign currency matching platform.[6] The company’s patented[7][8][9] matching technology was the first application[6] of p2p concept in the spot forex market.[10][11][12] Continue reading “Midpoint (company)”

Percent allocation management module

percent allocation management module, commonly known as PAMM, also sometimes referred to as percent allocation money management, describes a software application used predominantly by foreign exchange (forex) brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit, each managed account has its own ratio in PAMM. Trader’s activity results (trades, profit and loss) are allocated between managed accounts according to the ratio. Continue reading “Percent allocation management module”

Managed float regime

Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries’ exchange rates by buying and selling currencies to maintain a certain range. The peg used is known as a crawling peg. Continue reading “Managed float regime”