GENERAL KNOWLEDGE

Detailed explanation-1: -The U.S. dollar dominated the list of the most traded currency pairs in 2022, being involved all of the top nine currency pairs. The most common forex transaction in that year was the euro and the U.S. dollar, which accounted for almost 23 percent of the average daily turnover of all currency exchanges in April 2022.

Detailed explanation-2: -Foreign exchange forward transactions refers to facility for the clients to buy or sell currencies at a future date at a predetermined price. The settlement date of the transaction will be more than 2 business working days.

Detailed explanation-3: -The forward exchange rate (also referred to as forward rate or forward price) is the exchange rate at which a bank agrees to exchange one currency for another at a future date when it enters into a forward contract with an investor.

Detailed explanation-4: -The most common way is to measure a bilateral exchange rate. A bilateral exchange rate refers to the value of one currency relative to another. Bilateral exchange rates are typically quoted against the US dollar (USD), as it is the most traded currency globally.