Foreign Exchange Related Math

1. A customer of your bank wants to remit £5,000 to London by TT. What rate you would
quote for the remittance if you want to retain 0.25 profit margin using the following data:
US$ 1= Tk. 68.4040—68.8050
£1 = US$ 1.4430—1.4450

2. Calculate the buying rate of your bank for purchase of a bill for £5,000 using these data:
i. Tenor of the bill: 60 days from sight
ii. Transit time: 10 days
iii. Interest rate: 15% per annum
iv. Bank’s profit margin: Tk.0.10 per £1
v. Overhead charges : Tk. 0.05 per £1
vi. Prevailing exchange rate:
£1 = US$1.5065—1.4575
US$1 = Tk. 68.6020—68.4040

3. Calculate the selling price of Euro using these data:

i. Interbank exchange rate:
Euro 1 = US$1.3780—1.3680
US$1 = Tk.68.5030—68.4070
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ii. Load a profit margin @8% per Euro
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iii. TT charge 12%
iv. Please also calculate the amount of Taka to be debited to the customer account for
selling TT of Euro 5000.

4. Calculate the buying rate of your bank for purchase of pound sterling for demand draft
i. Exchange rate of pound sterling at New York US$ 1.6570—1.6580
ii. Spot TT exchange rate of US$ Tk.31.4250—31.5250
iii. Transit time 20 days
iv. Annual interest rate at New York 12%
v. You want to include profit Tk.0.0625 to exchange rate.

5. Calculate the purchase price of 3 month bill which is drawn at London Bank
i. Exchange rate of interbank market at Dhaka
$1 = Tk. 47.2050—2150
£1= $1.5260—5580
ii. To collect the amount of bill from London, you can consider 15 days
iii. Annual interest rate 12%
iv. Here, profit Tk.40

6. Followings are the exchange rate of US$ and Euro at Dhaka money market:
US$ 1= Tk. 57.7525—58.5575
Euro 1 = US$ 1.1810—1.1815
Calculate the purchase price of 180 days bill:—
i. Transit time 10 days
ii. Annual interest rate 9%
iii. Profit margin per Euro Tk.0.1050
iv. Handling charge per Euro Taka 0.0313 (Consider 1 year = 360 days)

Foreign Exchange (PH: Lecture sheet-8) Page 1

 Foreign Exchange Related Math

7. A customer of your bank account wants to remit £15,800 to London by DD. What would be
your exchange rate based on the following information:
i. US$ 1= Tk. 57.800—58.500 (Spot Rate)
ii. £ 1 = US$ 1.5998—1.6002
iii. Bank’s profit per pound Tk. 0.26
iv. Bank’s overhead per pound Tk. 0.52
v. Bank gives 8% annual interest rate to its customers or 10 days transit time

8. Calculate the purchase and selling price of Japanese Yen in exchange of per Swiss Franc
based on the following spot rate:
i. US$ 1 = Yen 150.7700—150.8500
ii. US$ 1 = Swiss Franc 1.7533—1.7639
How much Japanese Yen will your Bank deliver against the Swiss franc 10,00,000?

9. A customer of your bank wants to remit £15.370 to London by DD. What would be your
exchange rate based on the following information:
i. US$ 1 = Tk. 69.0500—69.9700 (Spot Rate)
ii. £ 1 = US$ 1.7523—1.7529
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iii. Bank’s profit margin Tk. 8%
iv. Bank’s overhead per pound Tk. 0.215
v. Bank gives 5% annual interest rate to its customers for 10 days transit time

10. Calculate the exchange rate of 90 days export bill based on the following information:
i. Euro 1 = US$ 1.3291—1.3296
ii. US$ 1 = Tk. 68.4500—69.5500
v. Transit time 10 days
vi. Annual interest rate 10%
vii. Profit margin per Euro Tk.0.12 (Consider 1 year = 360 days)

Foreign Exchange (PH: Lecture sheet-8) Page 2