Statrys Forex 101: What is an Interbank Rate?

In this episode of Statrys Forex 101, Jonathan Cusimano, Head of FX at Statrys, explains what the interbank rate is and how it sits at the core of the global foreign exchange market. The interbank rate is the exchange rate banks use when trading large volumes of currency directly with one another, typically in transactions worth tens of millions of dollars.

Jonathan also explains why this matters to businesses. While most companies never access the interbank market directly, this rate forms the base price for foreign exchange transactions.

Key Takeaways

• What the interbank rate is and who uses it
• Why interbank FX trades involve very large transaction sizes
• How the interbank rate affects the FX rates offered to businesses
• How FX fees are applied on top of the interbank rate