![]() ![]() It is therefore advisable for the parties to a transaction linked to the representative rate to stipulate in advance what the relevant rate is to be: for example, the one published on the date of the transaction, the latest published rate before the date on which transaction is carried out, or the rate published on a certain date before or after the date of the transaction. The time is not fixed, however, and the rates may be calculated and made available to the public at other times. Information on the new rates of exchange is normally available in the afternoon (see below). There may, of course, be other occasions when representative rates cannot be published due to lack of data or because there has been no trade in foreign currency, or for other reasons, and the bank has no obligation to publish representative rates on any specific date. There are no representative rates on Saturdays, Sundays, Israeli holidays, Christmas Day, New Year’s Day and Easter, when foreign-exchange markets are closed in most countries. The Bank of Israel calculates representative exchange rates once a day on foreign-currency business days only, and makes them available to the general public as a purely informational service. ![]() Several countries which have interbank foreign-currency trading also publish representative exchange rates, including the European Central Bank (ECB) and the Swiss National Bank (SNB). The representative rate is binding for such a transaction only if explicitly stipulated in advance by the parties. Parties to a foreign-currency-indexed business transaction may carry out the transaction at any exchange rate agreed between them. They are used mainly for valuations and in contracts. The rates have no official or legal standing, and are not published in the Official Gazette. ![]() The representative rate of any currency is an indicator of the exchange rate prevailing in the foreign exchange market it is based on an average of buying and selling prices published by banks, and does not necessarily reflect rates at which transactions were carried out. Representative rates are indicative exchange rates of foreign currencies in terms of NIS. Explanatory Notes to the Representative Exchange Rates ![]()
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