According to the Central Bank Russian Federation on August 30, 2019, the price for 1 Bulgarian Lev (BGN) is 37.8063 Russian ruble(RUB). Compared to the previous working day, the change was +0,1531 Russian ruble. To view the archive of the Bulgarian lev exchange rate, click on the “Today” link and select the desired date using the calendar.

This chart will help you quickly receive information about quotes of the Bulgarian lev against the ruble on the Forex market in real time. The user is given the opportunity to customize the terminal according to his preferences, choosing the style of bars and customizing indicators. Updated online, real-time BGN/RUB currency quotes reflect Forex trading.

date	Central Bank rate	Change	Percent
Today, Fri	1 BGN = 37.81 RUB	+0,15 RUB	+0,41 %
Yesterday, Thu	1 BGN = 37.65 RUB	+0,02 RUB	+0,04 %
August 28, Wed	1 BGN = 37.64 RUB	+0,15 RUB	+0,41 %
August 27, Tue	1 BGN = 37.48 RUB	+0,35 RUB	+0,94 %
August 24, Sat	1 BGN = 37.14 RUB	-0,12 RUB	-0,31 %
August 23, Fri	1 BGN = 37.25 RUB	-0,37 RUB	-0,97 %
August 22, Thu	1 BGN = 37.62 RUB	-0,19 RUB	-0,51 %
August 21, Wed	1 BGN = 37.81 RUB	-0,00 RUB	-0,01 %
August 20, Tue	1 BGN = 37.81 RUB	+0,41 RUB	+1,09 %
August 17, Sat	1 BGN = 37.4 RUB	-0,15 RUB	-0,41 %
August 16, Fri	1 BGN = 37.56 RUB	+0,28 RUB	+0,75 %
15 August, Thu	1 BGN = 37.28 RUB	-0,26 RUB	-0,69 %
August 14, Wed	1 BGN = 37.53 RUB	+0,17 RUB	+0,46 %
August 13, Tue	1 BGN = 37.36 RUB	+0,04 RUB	+0,10 %

Dynamics of the official exchange rate of the Bulgarian lev to the ruble according to the Central Bank of Russia

The graph shows the dynamics of changes in the value of 1 Bulgarian leva (BGN) against the ruble (RUB). Using quick links or the horizontal ruler under the graph, you can select any time period that interests you.

For the period you selected, minimum price for 1 Bulgarian Lev was ($min|number:4$) Russian ruble. It was ($min|date:"d MMMM yyyy"$) years. The maximum price for 1 Bulgarian Lev was recorded ($max|date:"d MMMM yyyy"$) of the year and was equal to ($max|number:4$) Russian ruble.

Cross-currency rates from the Central Bank of the Russian Federation

Cross exchange rates are prepared based on the official exchange rate of the Russian ruble to foreign currencies, established by the Central Bank of the Russian Federation as of August 30, 2019.

Currency	Cross course
Ruble to Bulgarian Lev	1 RUB = 0.0266 BGN
Bulgarian Lev to Australian Dollar	1 BGN = 0.8398 AUD
Bulgarian Lev to Azerbaijani Manat	1 BGN = 0.9618 AZN
Bulgarian Lev to Armenian Dram	1 BGN = 269.8729 AMD
Bulgarian Lev to Belarusian Ruble	1 BGN = 1.1777 BYN
Bulgarian Lev to Brazilian Real	1 BGN = 2.3396 BRL
Bulgarian Lev to Hungarian Forint	1 BGN = 168.605 HUF
Bulgarian Lev to Korean Won	1 BGN = 688.6265 KRW
Bulgarian Lev to Hong Kong Dollar	1 BGN = 4.4488 HKD
Bulgarian Lev to Danish Krone	1 BGN = 3.8128 DKK
Bulgarian Lev to Dollar	1 BGN = 0.567 USD
Bulgarian Lev to Euro	1 BGN = 0.5112 EUR
Bulgarian Lev to Indian Rupee	1 BGN = 40.6891 INR
Bulgarian Lev to Kazakh Tenge	1 BGN = 219.8663 KZT
Bulgarian Lev to Canadian Dollar	1 BGN = 0.7542 CAD
Bulgarian Lev to Kyrgyzstani Som	1 BGN = 39.5453 KGS
Bulgarian Lev to Chinese Yuan	1 BGN = 4.0617 CNY
Bulgarian Lev to Moldovan Leu	1 BGN = 10.1145 MDL
Bulgarian Lev to Turkmenistan Manat	1 BGN = 1.9815 TMT
Bulgarian Lev to Norwegian Krone	1 BGN = 5,112 NOK
Bulgarian Lev to Polish Zloty	1 BGN = 2.24 PLN
Bulgarian Lev to Romanian Leu	1 BGN = 2.4213 RON
Bulgarian Lev to SDR (Special Drawing Rights)	1 BGN = 0.4133 XDR
Bulgarian Lev to Singapore Dollar	1 BGN = 0.7875 SGD
Bulgarian Lev to Tajikistani Somoni	1 BGN = 5.4967 TJS
Bulgarian Lev to Turkish Lira	1 BGN = 3.2934 TRY
Bulgarian Lev to Uzbek Sum	1 BGN = 5,329.4042 UZS
Bulgarian Lev to Hryvnia	1 BGN = 14.2987 UAH
Bulgarian Lev to Pound Sterling	1 BGN = 0.4637 GBP
Bulgarian Lev to Czech Koruna	1 BGN = 13.2101 CZK
Bulgarian Lev to Swedish Krona	1 BGN = 5.4844 SEK
Bulgarian Lev to Swiss Franc	1 BGN = 0.5569 CHF
Bulgarian Lev to South African Rand	1 BGN = 8.6662 ZAR
Bulgarian Lev to Japanese Yen	1 BGN = 59.9699 JPY

Information about the Bulgarian Lev

The Bulgarian Lev is the currency of Bulgaria. Bank code- BGN. There are 100 stotinki in 1 lev. There are banknotes in denominations of 2, 5, 10, 20, 50 and 100 leva and coins of 1, 2, 5, 10.50 and 50 stotinki.

History of the Bulgarian lev

The first Bulgarian lion appeared in 1881 after Bulgaria left the Ottoman Empire. In the new state, the lion was equated to one of the most stable world currencies - the French franc. Bulgaria joined the Latin Monetary Union, which for the first time attempted to introduce a single standard for the European currency. In 1899-1906. Wars broke out in the Balkans, as a result of which the exchange of Bulgarian levs for gold was suspended in 1912. Until 1928, gold and silver levs were in use, and one lev was equivalent to 10.86956 mg of pure gold.

In the Second world war Bulgaria was occupied by Nazi Germany, then the lion was tied to the Reichsmark in a ratio of 32.75. 1. With the arrival of Soviet troops, 15 levs were equal to 1 ruble. In the fall of 1945, $1 was equal to 120 leva; in 1947, a dollar was worth 147 leva, but it was no longer possible to actually exchange leva for dollars.

High inflation in 1952 forced the government to implement monetary reform with an official exchange rate of 1:100. Due to high inflation, a monetary reform was carried out in the country in 1952. The official exchange rate was 100 to 1, but in reality, depending on the amount of exchange, citizens received from 3 new leva for 100 old leva to 1 leva for 200 leva. Prices for goods and services have changed much less, approximately in the ratio of 25.1.

The Bulgarian leadership made attempts to peg the national currency exchange rate to 6.8. 1, but by 1957 the proportion had reached 9.52. 1. Already in 1962, a redenomination took place in Bulgaria again at an exchange rate of 10. 1. As a result, the Bulgarian lev ceased to exist as a convertible currency. For trading operations, the exchange rate was officially set at 1.17 levs per $1. In 1964, tourists could exchange currency at the rate of 1 dollar to 2 levs. But over the next 30 years, the Bulgarian currency showed stability.

After the collapse of the USSR, inflation in Bulgaria reached high levels, the currency devalued, but the same phenomena occurred in other countries of the socialist bloc. Only in 1997 was it possible to peg the Bulgarian lev to the German mark in a ratio of 1,000.1.

When a new currency, the euro, appeared in 1999, Bulgaria underwent monetary reform. The levs were exchanged for new ones at the rate of 1,000. 1. At this point, all Bulgarian money is necessarily covered by the foreign exchange reserves of the Bulgarian People's Bank. The Bulgarian lev is pegged to the euro at the rate of 1 euro - 1.95583 levs.

In 2012, it was planned for Bulgaria to join the eurozone, but the financial crisis upset the plans: so far the country cannot comply European standards and the issue was postponed until 2015. Due to the levy's peg to the euro, the currency is not used in the Forex market, since transactions with it do not make sense. In the spring of 2012, 1 lev cost 19.98-20.02 rubles - this is the minimum value. In 2014, the price of the Bulgarian currency reaches 30 Russian rubles.

Economy of Bulgaria

Bulgaria is attractive to investors: before the financial crisis, its economy grew by an average of 6% per year, and the country's leadership is systematically attracting foreign capital with low tax rates.

The currency legislation of Bulgaria has characteristic features. For example, tourists can unlimitedly import and export foreign currency into the country, but a declaration must be completed. There are some restrictions on the export of national currency from Bulgaria. To make a return exchange, you must present a receipt confirming the purchase of leva.

The main source of money for the Bulgarian budget is the export of raw materials. The inflation rate is about 12.2% per year. Bulgarian levs are a freely convertible currency, which explains their stable demand throughout the world. IN Lately In Bulgaria it is not easy to find an exchange office that accepts Russian rubles. Even if such an exchanger is found, the rate will most likely be very unfavorable. Therefore, tourists are recommended to take US dollars or euros on a trip to Bulgaria, which can be used to pay or exchange at any exchange office.

How much will

For convenience, a quick “calculator” is provided to help you understand which banknote costs how much. The information is current as of August 30, 2019 according to the Central Bank.

Currency	Conversion
5 BGN	RUB 189.0315
10 BGN	RUB 378,063
25 BGN	RUB 945.1575
50 BGN	RUB 1,890.315
100 BGN	RUB 3,780.63
250 BGN	RUB 9,451,575
500 BGN	RUB 18,903.15
1,000 BGN	RUB 37,806.3
2,500 BGN	RUB 94,515.75
5,000 BGN	RUB 189,031.5
10,000 BGN	RUB 378,063.0
25,000 BGN	RUB 945,157.5
50,000 BGN	RUB 1,890,315.0
100,000 BGN	RUB 3,780,630.0

Bulgarian Lev– the official currency of Bulgaria. Bank code - BGN. 1 lev is equal to 100 stotinki. The denominations of current banknotes are 100, 50, 20, 10, 5 and 2 levs, coins are 1 lev, 50, 20, 10, 5, 2 and 1 stotinka.

On the front side of 2 levs there is an image of Saint Paisius of Hilendar, a priest of the 18th century, one of the leaders of the Bulgarian revival, the author of the book “Slavic-Bulgarian History”, on the back there is a fragment of this book; for 5 levs - the artist of the early 20th century Ivan Milev Lavev and a reproduction of his works; on 10 – the 19th century scientist Peter Beron and astronomical instruments; on 20 - architectural elements of the People's Bank of Bulgaria and the building itself; 50 – Bulgarian poet of the late 19th – early 20th centuries Pencho Petkov Slaveykov and his works; for 100 levs - late 19th century writer Aleko Konstantinov and fragments of books.

Coins in denominations from 1 to 50 stotinki contain on the obverse the image of the Madara horseman - a monument of the early Middle Ages and the inscription "Bulgaria", on the reverse - the denomination, the word "stotinka" and the year of issue. On the bimetallic coin of 1 lion on the front side there is Saint Ivan Rylsky, who lived in the 9th century, on the back there is the inscription “1 lion” and the year of minting.

The Bulgarian lion was first issued in 1881, when the country's territory seceded from the Ottoman Empire and a new state was created.

Then the rate of the leva was equal to one of the hardest currencies of that time - the French franc. Bulgaria at that time was part of the so-called Latin Monetary Union, which represented the first attempt to introduce a single standard of monetary units in Europe.

However, due to the wars in the Balkans in 1899-1906 and in 1912, the exchange of levs for gold was suspended.

Until 1928, both gold and silver leva were in circulation. In 1928, the country established a fixed ratio: 1 lev was equal to 10.86956 mg of pure gold.

During the Second World War, when Bulgaria was occupied by Nazi Germany, the lev was pegged to the Reichsmark at a rate of 32.75 to 1. The arrival of Soviet troops led to the fact that 15 levs were equated to 1 Soviet ruble.

In October 1945, the exchange rate was 120 leva per US dollar, in 1947 – 147 leva. At this time, the real possibility of free exchange no longer existed.

Due to high inflation, a monetary reform was carried out in the country in 1952. The official exchange rate was 100 to 1, but changes in the currency system were of a confiscatory nature: citizens could, depending on the amount, exchange their savings in the bank at a rate of 100 to 3 to 200 to 1. Changes in the prices of goods and services were made at on a much smaller scale: 25 to 1.

The Bulgarian leadership tried to peg the lev to the US dollar at a rate of 6.8 to 1, but by 1957 the ratio had dropped to 9.52 to 1.

In 1962, denomination was again carried out in the country. The exchange rate was 10 to 1. At the same time, the lev finally ceased to be a convertible currency. The official rate was set at 1.17 levs per dollar for trade transactions. Already in 1964, exchange for tourists was carried out at the rate of 2 levs per dollar. Nevertheless, over the next 30 years, the Bulgarian national currency demonstrated relative stability.

The collapse of the Soviet bloc, the fall of Communism and democratization in Bulgaria, as in many other countries, were accompanied by high levels of inflation and currency devaluation. It was only in 1997 that the lev was pegged to the German mark at a rate of 1,000 to 1.

In 1999, when the euro appeared, Sofia carried out monetary reform. The old levs were exchanged for new ones in a ratio of 1,000 to 1. Since that time, all issued money is necessarily covered by the foreign exchange reserves of the People's Bank of Bulgaria. The lev is pegged to the single European currency at a rate of 1.95583 per euro.

Bulgaria was supposed to enter the eurozone in 2012, but the onset of the global financial crisis upset these plans: today the country does not meet European criteria for inflation, and the issue has been postponed until 2015.

Due to the fact that the lev exchange rate is pegged to the euro, the Bulgarian currency is not used in the Forex market - for traders, transactions with it do not make sense. In the summer of 2018, 1 lev could be bought for 37.15-40.67 Russian rubles.

Bulgaria may be of interest to investors: before the global financial crisis, its economic growth averaged more than 6% per year, the country's leadership is systematically pursuing a course to attract foreign capital, and maintains low tax rates for the corporate sector.

Bulgarian currency legislation has a number of features. For tourists, the import and export of any foreign currency is not limited, but a declaration is required. There are restrictions on the export of Bulgarian levs. For reverse exchange It is necessary to keep receipts for the exchange of foreign currency into levs.

Length and distance converter Mass converter Converter of volume measures of bulk products and food products Area converter Converter of volume and units of measurement in culinary recipes Temperature converter Converter of pressure, mechanical stress, Young's modulus Converter of energy and work Converter of power Converter of force Converter of time Linear speed converter Flat angle Converter Thermal Efficiency and Fuel Economy Number Converter to various systems notations Converter of units of measurement of the amount of information Currency rates Sizes of women's clothing and shoes Sizes of men's clothing and shoes Angular velocity and rotation frequency converter Acceleration converter Angular acceleration converter Density converter Specific volume converter Moment of inertia converter Moment of force converter Torque converter Specific heat of combustion converter (by mass) ) Energy density and specific heat of combustion converter (by volume) Temperature difference converter Coefficient of thermal expansion converter Thermal resistance converter Specific thermal conductivity converter Specific heat capacity converter Energy exposure and thermal radiation power converter Heat flux density converter Heat transfer coefficient converter Volume flow converter Mass flow converter Converter molar flow rate Mass flow density converter Molar concentration converter Mass concentration in solution converter Dynamic (absolute) viscosity converter Kinematic viscosity converter Surface tension converter Vapor permeability converter Water vapor flow density converter Sound level converter Microphone sensitivity converter Sound pressure level (SPL) converter Sound pressure level converter with selectable reference pressure Brightness converter Luminous intensity converter Illuminance converter Resolution converter in computer graphics Frequency and Wavelength Converter Diopter Power and Focal Length Diopter Power and Lens Magnification (×) Converter electric charge Linear Charge Density Converter Surface Charge Density Converter Volume Charge Density Converter Converter electric current Linear Current Density Converter Surface Current Density Converter Electric Field Strength Converter Electrostatic Potential and Voltage Converter Electrical Resistance Converter Electrical Resistivity Converter Electrical Conductivity Converter Electrical Conductivity Converter Electrical Capacitance Converter Inductance Converter American Wire Gauge Converter Levels in dBm (dBm or dBm), dBV ( dBV), watts and other units Magnetomotive force converter Magnetic field strength converter Magnetic flux converter Magnetic induction converter Radiation. Ionizing radiation absorbed dose rate converter Radioactivity. Radioactive decay converter Radiation. Exposure dose converter Radiation. Absorbed Dose Converter Decimal Prefix Converter Data Transfer Typography and Image Processing Units Converter Timber Volume Units Converter Calculation molar mass Periodic table of chemical elements by D. I. Mendeleev

1 Bulgarian Lev = 37.8226296190203 Russian Ruble

Initial value

Converted value

Euro US Dollar Canadian Dollar British Pound Sterling Japanese Yen Swiss Franc Algerian Dinar Argentine Peso Australian Dollar Bahamian Dollar Barbados Dollar Bermudian Dollar Brazilian Real Bulgarian Lion Chilean Peso Chinese Yuan Czech Krone Danish Krone Egyptian Pound Fiji Dollar Hong Kong Dollar Hungarian Forint Icelandic Krone Indian Rupee Indonesian Rupee New Israeli Shekel Jamaican Dollar Jordanian Dinar Latvian Lat Lebanese Pound Lithuanian Lita Malaysian Ringgit Mexican Peso New Zealand Dollar Norwegian Krone Pakistani Rupee Philippine Peso Polish Zloty Romanian Leu Russian Ruble Saudi Riyal Singapore Dollar South African Rand South Korean Won Swedish Krona New Taiwan Dollar Thai Baht Turkish Lira Ukraine Skye hryvnia

More about currency and money

General information

The word "currency" in Russian can mean all types of money used in circulation in a country or region for payments, or all money used throughout the world.

History of currency

The need for currency appeared with the development of trade. Before this, people engaged in barter, that is, they exchanged their goods and services for the goods and services of other people. People who lived by gathering and hunting had little need for various goods, so it was easy for them to find a person for barter exchange. For example, every person needed food, and many also needed weapons for hunting, so a weapon maker could easily find people willing to trade them for food. Anthropologists believe that in addition to barter, people in ancient times often gave each other gifts, sometimes hoping to receive something in return, and sometimes not. Regardless of the expectation of reciprocal gift exchange, it is observed that in many cultures, those who are given a gift usually give something in return to the giver. That is, an exchange takes place.

The more complex human needs became, especially with the development of agriculture, crafts, and simple technologies, the more difficult it was to find people for barter who needed the goods being produced, and who could offer in return exactly the goods that the manufacturer needed. In agriculture, for example, it was difficult to exchange products grown at different times of the year. Thus, a family receiving a harvest in the spring could only exchange it for products or goods produced at that time of year. If they needed fruits, vegetables, or cereals, which were collected at the end of summer, then they could not profitably exchange their goods without a third “good” that was in great demand. Money became such a “commodity”.

Early currency and money

In the beginning, people used rare and non-perishable items as money, such as cowrie shells or ivory, as well as precious stones and pearls. Gradually, people learned to mine and work with metals and began to use them as money, especially valuable metals such as gold and silver.

In many African countries, special bracelets, manillas, were used as money, which had the shape of an incomplete ring with rounded ends. Different areas used different manillas. They were usually made in Europe, but African-made manillas are also found. Many associate them with the slave trade, as European slave owners often paid in manillas for the slaves they purchased. Rich people in Africa often wore manillas to show their wealth, just as in many other countries people wear jewelry made of gold, platinum and precious stones. Because of the weight of manillas, they even had a special gait. In some countries, manillas were used as a form of payment until the twentieth century.

Coins

In order to make an honest exchange and have confidence in the weight of the exchanged metal, they began to cast coins and put on them the manufacturer's mark, and often the value of the coin itself. Gradually, coin production came under government control to make it easier to limit counterfeiting. So, in different countries, and sometimes cities, they began to issue their own coins, which became the local currency. This made it possible to facilitate trade both in the region where these coins were used and beyond its borders.

In the beginning, the cost of coins directly depended on the weight and cost of the metal from which they were made. So, in countries where there were more deposits of a certain metal, coins made from it were of greater weight. Gradually, the cost of metal ceased to have such great importance, and the price of the coin was set according to other criteria. Coins are made in special facilities called mints. Portraits of rulers are still printed on many coins from the times of Ancient Rome and Greece.

Banknotes

As trade volumes increased, so did the number of coins that merchants had to carry or carry. It was not only difficult, but also dangerous. Robbers and pirates robbed travelers. During shipwrecks, merchants lost not only goods, but also money, since the crew was usually physically unable to save heavy chests of coins, especially when people's lives were in danger. The invention of printing equipment made it possible to carry out mass printing, and over time, money printed on paper, called banknotes, came into use. The first banknotes appeared in the seventh century, approximately simultaneously in China and the Arab Caliphate. Later they began to be printed in Europe. In the beginning, banknotes were a document guaranteeing their exchange for coins, but later they began to be used as money in themselves. Some of the first banknotes in ancient China were made of leather. The cost of producing banknotes is usually lower than their face value. This type of money is called fiat money and its price is set by the government.

The use of banknotes has many advantages, such as ease of handling. But they also come with many problems, such as counterfeiting and inflation. When there is a shortage of money in the treasury, the government can print more banknotes. At the same time, money depreciates, that is, the same amount of money can buy less goods after a certain period of time. Inflation is a serious economic problem for the state, but despite this, some states still resort to printing money as a solution to the problem.

From the very beginning of the production of banknotes, they were made not only from paper, but also from other materials, such as wood, seal skin and other animals, silk, and other fabrics. Sometimes even playing cards, wine labels and chess pieces were used. Nowadays, most banknotes are paper, but some countries are switching or have finally switched to polymer money. Their production technology was developed in Australia. Despite their higher production costs, polymer banknotes are more durable, more hygienic, and more difficult to counterfeit due to additional degrees of security. The polymers from which banknotes are made are water-resistant, so polymer money can withstand accidental washing better than paper money. washing machine. Most banknotes are printed horizontally, but in some countries they are printed vertically, as people often prefer to use money vertically, for example when passing it around or inserting it into machines.

Bank cards and cashless payment system

The emergence of banks made it possible to carry out non-cash payments with virtual, including electronic, currency. Many countries now use debit and credit payments. In some countries they have become the main form of payment. Some companies have begun to accept a new form of electronic money - cryptocurrency, in particular Bitcoin. At the same time, in some countries cash is still the only form of payment.

Banks and companies that provide electronic payments to customers receive a percentage on currency exchanges, but allow customers to pay their home country's currency to sellers in another country, making online shopping in other countries much easier.

Currency in different countries

Many countries have their own legal tender, that is, their own currency. Sometimes the currency of another state is accepted for payment. This may be done with or without government legislation, simply as a matter of convenience, especially in areas where tourism is highly developed. In some countries, on the contrary, the sale of goods for foreign currency can occur, contrary to prohibitions, on the black market. This happened, for example, in the Soviet Union and in some CIS countries after the collapse of the USSR, where holding currency was very strictly punished, but citizens exchanged wages for US dollars during the hyperinflation of the 90s. Thus, foreign currency is often used during an economic crisis, especially during periods of high inflation.

The name of monetary units is indicated by a special three-digit code made up of letters of the Latin alphabet, where the first two letters indicate the country, and the last - the name of the currency. This code is called a currency code and allows you to distinguish between currencies with the same name. For example, several countries use pounds, but only in the UK they are denoted by the code GBP, where GB stands for Great Britain and P stands for pounds. Similarly, several countries use rupees, but only in India they are designated INR (Indian rupee).

Some unions of countries have adopted one currency that is valid in several states at the same time. For example, a number of European Union (EU) countries use the euro. A common currency has many benefits, such as facilitating trade between countries with the same currency. In the countries of such a monetary union, serious problems are also possible, because economic problems in one or more countries of the union have a detrimental effect on the stability of the currency as a whole and on the economies of other countries. For example, during the financial crisis of 2008, the economies of Greece, Ireland, Portugal and Spain, as well as a number of other European countries that are not members of the EU but have close relations with EU countries, deteriorated. This instability caused a sovereign debt crisis in these countries due to the threat of bankruptcy and led to the instability of the euro.

Fixing the exchange rate

There are countries that, using a special regime of fixing the exchange rate, link their national currency to another, for example, to American dollars or euros. For example, in Belize, the dollar is pegged to the American dollar and is exchanged for American dollars at a rate of two to one. Countries with less developed economies more often use fixed exchange rates, including as a method of combating inflation. However, sometimes countries with more developed economies also pursue such policies. Thus, until 2005, China also had a fixed exchange rate between the yuan and American dollars. In China, this was enshrined in law, which prohibited exchange at a different rate. Such a policy is quite difficult to maintain, as it encourages illegal currency exchange on the black market. Another option for fixing a currency is to artificially maintain the rate by playing on a currency exchange exchange. In this case, the state has a currency reserve and buys or sells its national currency on the stock exchange in order to raise or lower the rate. The currency to which the local currency exchange is fixed is called the exchange rate anchor.

Forex

Currency exchange on a special market is called Forex, from the English words foreign exchange, merged into one word forex. This exchange is usually carried out by private individuals and financial intermediaries. Also, such exchanges are carried out by companies, such as banks, and ordinary firms that produce goods and services, as well as governments or organizations such as pension funds. There are a number of economic models designed to explain changes in exchange rates, but none can accurately predict or explain these changes over a long period of time. Trusts and funds, such as a pension fund, are also involved in buying and selling currencies in the Forex market. Trends in exchange rates can be tracked manually or using special programs. Exchange rates are influenced by factors such as the general economic condition in the country and region, the volume of international trade in this currency, and many others. The Forex currency market is open from 20:15 GMT on Sunday until 22:00 GMT on Friday.

Currency trading allows companies to collaborate with partners in other countries. Brokers participate in this trade because they receive commissions, and many organizations and companies - because they can make a profit from buying a currency cheaper and selling it at a higher cost. Exchange of currencies and receiving commissions for providing this service have existed for many centuries. Currently, approximately 39% of all exchange occurs on a large scale between banks and large dealers. Due to the large volumes of buying and selling in such transactions, the difference between the ask price or bid and the offer price or ask, that is, the spread, is much lower than in financial transactions in a smaller volume.

Some of the currency is exchanged to meet the foreign exchange needs of individuals and companies. For example, some companies provide currency exchange services and money transfers, both domestically and abroad. In this case, currency is purchased for personal use, but such transactions constitute a small part of the entire exchange. Most transactions in the Forex market are speculative and involve great risk. That is, a currency is usually bought in the hope that its price will increase, and if this happens, it is later sold and made a profit. A major role in currency exchange in the Forex market is played by hedge funds, that is, investment funds with high rewards and high risk, and are less regulated than other investment funds. Due to the large volumes of speculative currency exchange, it is precisely such exchange that has a greater impact on exchange rates compared to currency exchange for private use.

Do you find it difficult to translate units of measurement from one language to another? Colleagues are ready to help you. Post a question in TCTerms and within a few minutes you will receive an answer.