What does Noon Average Rate Contract NARC mean?
It a currency forward contract in which the central bank publishes the rate at noon. This rate becomes the reference point for the day end mark to market. The related parties set of the gain or losses each day based on the rate published by the central bank.
Futures Knowledge Explains Noon Average Rate Contract NARC
This was originally started by bank of Canada which posted USD / CAD rate each of the working day at noon. This is spot rate at noon for USD / CAD for that day. Noon Average Rate Contract is also referred at NARC.