Please read below to understand how the Airwallex exchange rate is calculated, what the interbank rate is and when you will receive your rate confirmation.
How is the foreign exchange rate calculated?
Airwallex has integrated with a number of financial institutions (including liquidity providers) around the world that provide pricing and execution services to Airwallex.
Airwallex calculates the foreign exchange rate used based on a wide variety of factors including available liquidity in the market, available prices from liquidity providers, other market conditions and agreed upon sales margins.
Confirmation of the foreign exchange rate used in any conversion is provided immediately after a foreign currency transaction.
For customers accessing our Quotes solution, the foreign exchange rate used will equal the Quotes rate active at the time of the transaction.
What is the interbank rate?
The interbank rate is the true bank rate traded between institutional banks, giving you access to the best rate currently available. Given the nature of foreign exchange markets, there is no single interbank rate. Our interbank rate is determined by us having reference to live exchange rates from our banking partners and market data sources, and then calculating a blended rate from those sources. The blended rate may involve calculating the weighted average of one or more exchange rates available to us.
We don't include a markup specific to you in the interbank rate. However, foreign exchange markets generally only operate 5 days per week, Monday to Friday. During the weekend, and other times when markets are closed or where rates are unavailable to us, an additional markup may be applied to our interbank rate to account for such situations.