Bid: The rate at which traders buy foreign exchange (buying rate).
Offer: The rate at which traders sell foreign exchange (selling rate).
Spread: The difference between bid and offer rates. It is profit margin.
American Terms (Direct quote): The number of dollars per unit of foreign currency.
European Terms: The number of units of foreign currency per unit of dollar.
Cross Rate: The relationship between two nondollar currencies.
Multiple Exchange Rate System: Different exchange rates for different types of transactions.
Arbitrage: Buying and selling of foreign currencies at a profit due to price discrepancies.
Speculators: Trader’s position in foreign exchange market for earning a profit.
Hard Currency: A fully convertible currency which is relatively strong and stable in value.
Convertible Currency: A currency that can be freely traded for other currencies.
Exotic Currency: Currency of developing country which is weak, unstable and unpredictable.
Foreign Exchange Rate: Price of a currency.
Discount: It exists when forward rate is less than spot rate.
Premium: It exists when forward rate is exceeds spot rate.
Black Market: Price of currency based on supply and demand conditions instead of government controls.
Kuwait, is the most valuable currency in the world.When it comes to the world highest, these currencies gave the US Dollar a run for its money which is the most traded currency of the world . With such a high demand for oil, Kuwait’s currency is bound to be in demand. Another thing to note is that if you work in Kuwait, you do not have to pay any sort of taxes.Kuwait is a country known for its great exploits in the oil industry. It has a globally stable economy. This goes a long way to show that this country is doing well for itself.n it gained independence from the British empire and it was equivalent to one pound at that time.Production of petroleum products in Kuwait is easy and the production cost is the cheapest compared to other countries. An interesting fact about the country is that Kuwait is a tax-free country and the unemployment rate is very low.