TradeAlmanac
Sign in

OTC exchange rate

The rate formed in direct deals between banks, away from the exchange order book.

How to read the number

Where exchange trading in a currency is restricted, the official rate is calculated exactly from banks' reports of such deals.

When the metric lies

There is no single book here: at one moment banks differ, and the data arrives with a delay, so intraday movement cannot be reconstructed from it.

Also known as: interbank rate

Related terms