Exchange Rate Law and Legal Definition
Currency exchange rates are the ever-changing prices set to buy or sell a certain unit of foreign currency in exchange for another currency. Some currency listings may be shown as "mid-market rates" that are neither "buy" rates nor "sell" rates. Mid-market rates are derived from mid-point between the buy and sell rates of large-value transactions in the global currency markets. Since "buy rates" and "sell rates" include overheads and profit margins that are set independently by each foreign exchange provider, they will vary depending on who you're talking to, and will always be different than the mid-market rate. Exchange rates for foreign currencies may be found on the Federal Reserve Board's daily H.10 statistical release and the monthly G.5 release list foreign exchange rates. Historical exchange rates, generally from 1971 to the present, can be found in the Board's H.10 release.
Some European countries have decided to adopt a unified currency called the Euro. As of this writing, Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain have adopted the Euro as their form of currency. You can obtain or exchange foreign currency from foreign exchange dealers, or from large commercial banks that offer this service. Check your yellow pages under Foreign Exchange Brokers or conduct an Internet search. Federal Reserve Banks do not offer this service.
The following is an example of a state statute dealing with exchange rates:
"(a) If the amount in a bill of exchange specified is expressed in money of the United States, the amount due thereon and the damages allowed for the nonpayment thereof must be ascertained at the time of the demand of payment or notice of nonpayment without reference to the rate of exchange between this state and the place on which such bill was drawn. (b) If the amount in a bill of exchange specified is expressed in money or currency of any foreign country, then the amount due, exclusive of the damages payable thereon, must be ascertained and determined by the rate of exchange, or the value of such foreign currency at the time of the demand of payment."
