exchange rate
Let an agent state exchange rates with pair, direction, date, source and type, and not give personalised financial advice.
Research draft, second pass
A second pass drafted this model: the structure a model of this thing needs, and what is known about it in the world. The line under this one says how the second half was obtained - researched against sources, or recalled without web access, in which case nothing here was read anywhere and every claim is a lead to verify. Unreviewed either way.
written by Claude from model knowledge without web access - no source was read, every claim is a lead to verify
Researched by: Claude
Purpose and description
Let an agent state exchange rates with pair, direction, date, source and type, and not give personalised financial advice.
The price of one currency expressed in another, used to convert amounts; rates may be fixed or floating, nominal or real, bilateral or trade-weighted.
What it is for: Converting prices, payments and accounts between currencies.
It can be convert amounts; quote it, as bid, ask or mid; track it over time; set or peg it, as central banks may do.
Distinguishing features
Direction matters: EUR/USD is USD per EUR
Mid-market differs from rates offered to customers
Nominal and real rates differ
Fixed and floating regimes
What it looks like
A number such as EUR/USD 1.10, on screens, websites and receipts.
How it is recognised
Currency pair notation such as EUR/USD
Bid, ask and mid rates
Cross rates between non-dollar currencies (Kreuzkurs)
Related models
is a kind of - price ratio
relates - pair
is set by - regime
is used in - cross-border
In practice
Families and kinds
fixed and floating rates
nominal and real rates
spot and forward rates
trade-weighted effective rates
cross rates
Identifiers
ISO 4217 pair three-letter codes currency pair
Standards and regulation
Central bank reference rates such as ECB euro reference rates
EU Cross-Border Payments Regulation on currency conversion transparency
Benchmark regulation
Failure modes and hazards
Inverting the pair
Hidden markups in consumer rates
Stale rates
Presenting forecasts as advice
Also called
Where this came from
wikidata · CC0 1.0
Drafted structure
Bundle to layer to finding to question, as the second pass will find it: 4 bundles · 8 layers · 8 findings · 16 questions.
Quote Pair, direction, value.
Direction errors are common.
Pair
Base and quote currency.
Pair
The currency pair.
- Which currency pair, and in which direction? definition
- Is the value units of quote per unit of base? boundary
Value
Rate and time.
Rate
The rate and timestamp.
- What is the rate, and at what time? measurement
- From which source? provenance
Type Kind of rate.
Different rates answer different questions.
Kind
Spot, forward, reference.
Kind
Type of rate.
- Is this a spot, forward or reference rate? definition
- Is it mid, bid or ask? definition
Regime
Fixed or floating.
Regime
Exchange rate regime.
- Is the currency fixed, pegged or floating? definition
- Are there multiple official rates? boundary
Conversion Using the rate.
Conversions should disclose costs.
Amount
Converted amount.
Conversion
Converted amount.
- What is the converted amount at this rate? measurement
- What fees or markups apply? measurement
Disclosure
Transparency.
Disclosure
Required disclosures.
- Is the markup over the reference rate disclosed? boundary
- Which regulation requires it? provenance
Limits No financial advice.
Rates move; agents must not advise on trading.
History
Past rates.
History
Historical data.
- What was the rate on a past date, from which source? provenance
- How volatile has it been? measurement
Advice
Boundaries.
Advice limits
What not to say.
- Is the user asking for trading or investment advice? boundary
- How should the agent respond? action
What the second pass must settle
- Should rate types be separate entries?
- Which reference sources should agents prefer?
- How should agents disclose markups?