CHRISTMAS OFFER Subscribe to France Magazines today CLICK HERE

Understanding currency jargon

PUBLISHED: 16:23 28 April 2017 | UPDATED: 16:41 28 April 2017

Understanding currency exchange jargon © Keith Brofsky / Thinkstockphotos

Understanding currency exchange jargon © Keith Brofsky / Thinkstockphotos

Archant

Before you start researching your currency exchange make sure you understand the jargon professionals use both in English and French

Written by Stuart Moffat, marketing manager at Currencies Direct

Interbank rates – les taux (mpl) interbancaires

Interbank rates are the wholesale rate at which banks (and only banks) buy and sell currency between themselves. It’s a useful indication of how a currency pair is performing however, people and businesses (whoever they use) will have their money exchanged at a ‘commercial’ rate.

Exchange rate – le taux de change

The exchange rate is the value at which a currency will be exchanged against another. It is generally expressed with four decimals.

Currency pair – une paire de devises (f)

When talking about exchange rates, currencies are always quoted in pairs, such as GBP/EUR and EUR/USD. The first currency is called the ‘base currency’ and the second one is a ‘quote currency’.

___________________________________________________________________________

Related articles

Ways to save money on currency exchange

Things you need to know about banking in France

___________________________________________________________________________

Currency converter – un convertisseur de devises

A common tool found on a number of company websites. They ask you to input the amount of currency you want to buy or sell and then they return an exchange rate and an amount. However, don’t always assume this is the rate you will get for your exchange.

Commission – une commission/les frais

The fee that a broker or bank may charge their clients for dealing on their behalf.

International money transfer – un transfert d’argent à l’étranger

The act of moving money from one country to another, from one destination account to a nominated overseas account.

Payee/beneficiary – bénéficiaire

The party receiving a money transfer, also known as recipient or beneficiary account.

Spot contract – un contrat immédiat

A spot contract allows you to agree an exchange rate based on the current market rate, for an immediate transfer.

___________________________________________________________________________

Related articles

What effect could Brexit have on currency exchange rates in 2017?

Brexit: will I still be able to buy a property in France?

___________________________________________________________________________

Forward contract – un contrat à terme

A forward contract enables you to lock in the current exchange rate for a transfer at a later date. This is usually a maximum of two years and you usually pay a deposit of around 10% up front and then the rest when the contract matures.

Limit order – ordre de marché cible

A limit order is generally used when you want to send foreign currency at a guaranteed rate. You your target exchange rate and when the market reaches that rate, your transfer will be triggered.

Rate alert – la surveillance des cours

Currency specialists often provide a rate alert service which will help you transfer based upon specific market movements. You choose the currency and the rate you’re interested in and they’ll inform you when the markets have reached that rate, allowing you to decide whether to transfer.

FCA – (Financial Conduct Authority) – Autorité de Conduite Financière

The FCA is a financial regulatory body in the UK. It regulates the conduct of more than 56,000 businesses, ensuring consumer protection as well as the integrity of the UK financial system.

ACPR – (French Prudential Supervision and Resolution Authority) – Autorité de Contrôle Prudentiel et de Résolution

The ACPR is an independent administrative authority which monitors the activities of banks and insurance companies in France.

More from French Property

Tuesday, October 9, 2018

A new apartment development is available for investment in the Alpine expat haven of Annecy in Haute-Savoie

Read more
French Alps
Thursday, September 6, 2018

Do you need an architect for a renovation or building project in France?

Read more
Renovating in France
Mon, 18:07

Why your trusty high-street bank might not be the place when it comes to getting the best currency deal

Read more
Buying guides
Wednesday, August 29, 2018

Don’t be bamboozled by strange foreign exchange terms – this handy currency transfer jargon buster explains all!

Read more
Buying guides
Thursday, August 23, 2018

Is a ‘notary public’ in the UK the same as a ‘notaire’ in France?

Read more
Buying guides
Monday, July 23, 2018

Dealing with a loved one dying is difficult in any circumstances, let alone in a different country. To simplify the process as much as possible, here are the administrative procedures and legalities you need to know about when dealing with a death in France

Read more
Wednesday, September 19, 2018

With income tax soon to be deducted at source in France, how might this affect you?

Read more
Working in France
Friday, August 24, 2018

Find out how the new flat tax of 30% on income from financial investments works in France

Read more
Friday, October 12, 2018

These bargain French properties are ready to move into so you can relax on your holidays

Read more
Buying guides
Friday, October 12, 2018

Take a look inside this hilltop castle in sunny Pyrenées-Orientales, on the market for €3.2m.

Read more
Languedoc-Roussillon
Subscribe today

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

France Forum

Questions about France? Visit our free France forum to get help and advice from thousands of other Francophiles and expats. Topics include: property, tax, law, travelling, pets, education, healthcare and much more.

Join the forum

Most Read

Join us on social media

France magazine
Living France magazine
French Property News magazine

Enter our competitions

Win books, DVDs, travel and even holidays in France in our great competitions! Take a look at our latest competitions…

Enter now