marktruilkoers

Marktruilkoers is a Dutch term that refers to the market exchange rate at which currencies are bought and sold in the foreign exchange market. It typically describes a two-way quotation with a bid and an ask: the bid is the price at which banks or dealers are willing to buy the base currency, and the ask is the price at which they are willing to sell it. The mid-market rate, the average of the two, is commonly used as a reference rate for reporting and comparisons.

Calculation and quotation: The marktruilkoers is determined by supply and demand in global currency markets, with participants including banks, investment funds, corporations, and retail brokers. The rate fluctuates continuously during trading hours and varies across platforms. Spreads between bid and ask depend on currency liquidity, trading volume, and time of day. Central bank policy, interest rate differentials, economic indicators, and geopolitical developments influence the level of the rate.

Use and implications: The rate serves as a benchmark for converting currencies in business transactions, travel, accounting, and pricing. When converting funds, an entity may use the marktruilkoers or a rate close to it, alongside any fees or spreads charged by intermediaries.

Historical note: The term has historical roots in periods when currencies such as the Deutsche Mark were quoted in exchange markets. With the euro’s introduction, many Dutch-speaking contexts now use euro exchange rates, but the concept of a market-based exchange rate remains central.

See also: foreign exchange rate, bid-ask spread, spot rate, forward rate.