The exchange rate at which a company or individual secures currency for a specific transaction. This is the direct cost to obtain foreign currency from the market, excluding any markup or fees.
Simple Example: TechCorp acquires euros at a rate of 1.0950 USD/EUR to pay a vendor in France.
Numerical Breakdown:
To acquire €100,000 at the acquisition rate of 1.0950 USD/EUR, the cost in USD would be:
100,000×1.0950=109,500100,000 x 1.0950 = 109,500100,000 x 1.0950=109,500 USD.
