The order of the lookup logic can sometimes change which exchange rate is identified for a given set of currencies and effective date.
What are the type of exchange rate matches?
There are three types: Exact, Inverse and Triangulated Matches. It is not required to import the exchange rates for every combination of currencies on a given date. Instead, a minimal set of exchange rates are imported and stored within the Equus Platform and logic is used to calculate the remaining rates.
Exact Match - The From and To Currency exactly match a record in the Exchange Rate table. The exchange rate is used without modification.
Inverse Match - The From and To Currency are reversed in the Exchange Rate table. The exchange rate in the table is reversed (1 / rate).
Triangulated Match - Triangulation is only used if an Exact Match or Inverse Match cannot be found that meets the specified criteria. Exact Match and Inverse Match are equally weighted so it an inverse record exists with a data close to the specified effective date, it will be used instead of the Exact Match.
What is the logical order applied to all exchange rate lookups?
The latest / most recent exchange rate will be used if multiple exchange rates are found within the date range
An Exact Match takes precedence over an Inverse Match on the same date
The system will do a triangulation using the system currency to find an exchange rate if an exact or inverted match does not exist within the date range
An Exact Match or Inverse Match within the data range takes precedence over any Triangulated Matches within the date range. The implication is that an exact match earlier in the range (if found) will be used instead of a Triangulated Match that is more recent.