TeachMeFinance.com - explain Cross exchange
Cross exchange -- An operation in exchange in which three
or more places are involved. For example, a person in New
York who has an obligation to meet in London may find
it more advantageous to forward to London in payment of it
a draft (bill of exchange) on Paris than to forward a draft on
London. In such a case exchange on Paris in New York
"would be cheaper than exchange on London in New York.
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