Direct quote: Difference between revisions
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imported>Doug Williamson (Generalise, from USD only.) |
imported>Doug Williamson (Add example.) |
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A foreign exchange rate quotation where the foreign currency amount is multiplied by the quoted rate, in order to calculate the domestic currency equivalent. | A foreign exchange rate quotation where the foreign currency amount is multiplied by the quoted rate, in order to calculate the domestic currency equivalent. | ||
'''Example''' | |||
From the perspective of a EUR-based entity, the exchange rate GBP 1 = 1.25 EUR (GBP/EUR 1.25) is a direct quote. | |||
GBP 100m would be worth: | |||
100 x 1.25 | |||
= EUR 125m. | |||
Revision as of 22:56, 21 March 2015
A foreign exchange rate quotation where the foreign currency amount is multiplied by the quoted rate, in order to calculate the domestic currency equivalent.
Example
From the perspective of a EUR-based entity, the exchange rate GBP 1 = 1.25 EUR (GBP/EUR 1.25) is a direct quote.
GBP 100m would be worth:
100 x 1.25
= EUR 125m.
