There are four types of prices for the bank exchange rate card-- cash buying rate, spot buying rate, spot selling rate, and cash selling rate. The bank card exchange rates of "buying" and "selling" are shown from the perspectives of the bank.

• Cash rate: price for currency cash after exchange
• Spot rate: price for currency deposit (passbook) or traveler's checks after exchange
• (Note: Cash rate is generally higher than the spot rate because the bank needs to carry the costs of holding foreign currencies.)

The explanations for the four exchange rates are as follows:

Cash Buying Rate

This refers to the price by which the bank purchases (exchanges) foreign currency cash from you with new Taiwan dollars. Usually this price is the lowest among the four prices, because by holding foreign currencies the bank has its own holding costs, which is reflected on the exchange rate.

Thus, after you have returned to Taiwan from abroad with unspent foreign currencies and you want to exchange them back to new Taiwan dollars, you should look for the bank with the highest cash buying rate to be more cost-effective.

Cash Selling Rate

This refers to the price by which you purchase (exchange) foreign currency cash from the bank with new Taiwan dollars. This is the highest among the four prices. When you are going abroad and want to exchange for foreign currencies, you exchange a unit of foreign currency with this price.

Thus, when you are exchanging, you should look for the bank with the lowest cash selling rate to be more cost-effective.

Spot Buying Rate

This refers to the price by which the bank purchases (exchanges) foreign currency from you with new Taiwan dollars. Usually this price is the second lowest among the four prices.

The situations in which this rate is generally applied to are when the foreign currency account deposits are to be transferred or converted into the new Taiwan dollar account deposits, if you have received a foreign currency remittance to be converted into new Taiwan dollars, or foreign currency calculated funds are to be redeemed.

Spot Selling Rate

This refers to the price by which you purchase (exchange) foreign currency from the bank with new Taiwan dollars. Usually this price is the second lowest among the four prices.

The situations in which this rate is generally applied to are when new Taiwan dollars are to be deposited into foreign currency account, or a remittance is made in foreign currency.

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