What is the spot exchange rate ? The spot exchange rate, also known as the spot exchange rate, is the exchange rate used for foreign exchange delivery within two business days after the transaction between the buyer and the seller .
When an enterprise handles foreign currency transactions and converts foreign currency financial statements, it shall use the spot exchange rate on the transaction date to convert the foreign currency amount into the functional currency for recording; An approximate exchange rate conversion of the spot exchange rate. The spot exchange rate usually refers to the midpoint of the exchange rate of RMB on the day announced by the People’s Bank of China . The foreign currency exchange business or transactions involving foreign currency exchange incurred by an enterprise shall be converted at the exchange rate actually adopted in the transaction (that is, the bank’s buying or selling price). The approximate exchange rate of the spot exchange rate refers to the exchange rate determined according to a systematic and reasonable method and similar to the spot exchange rate on the date of the transaction, usually using the current average exchange rate or weighted average exchange rate. Enterprises should generally use the spot exchange rate for conversion. If the exchange rate does not change much, the approximate exchange rate of the spot exchange rate can also be used for conversion. The market exchange rate is the exchange rate at which foreign exchange transactions are conducted in the free foreign exchange market of countries with loose exchange controls .