A forward exchange rate is used to help determine the value of a currency at a future point in time.

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A forward exchange rate is a rate quoted for a transaction that will take place in the future, usually within 30, 60, or 90 days. The rate is agreed upon at the time the transaction is initiated and is used to help determine the value of a currency at a future point in time. This allows businesses and investors to hedge against currency risk and plan for future transactions.

A Forward Exchange Rate Is Used to Help Determine the Value