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Explain the difference between Forward Exchange Rate and Spot Exchange Rate?

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Question added by Abeba Assemaw , Financial Consultant , M-Birr Ltd.
Date Posted: 2015/06/26

This is pretty basic. 

Spot exchange rate refers to the price you would buy a currency for today/immediately.

Forward exchange rate refers to a price that is agreed upon at a later date.

 

Both links courtesy of  Investopedia

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