Base currency: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>P.F.cowdell@shu.ac.uk m (Categorise the page) |
imported>Doug Williamson m (Added more space) |
||
| Line 6: | Line 6: | ||
Also known as the Reference currency or the Fixed currency. | Also known as the Reference currency or the Fixed currency. | ||
2. | 2. | ||
| Line 13: | Line 14: | ||
The base currency also serves as the basis for all interest rate calculations. | The base currency also serves as the basis for all interest rate calculations. | ||
== See also == | == See also == | ||
Revision as of 08:54, 22 August 2014
1.
The base currency in a foreign exchange rate quotation is the currency which there is one of.
For example in the quotation 1 GBP = 1.4600 USD, the base currency is GBP; meaning one British pound is exchanged for a variable number of USD, depending on the rate quoted.
Also known as the Reference currency or the Fixed currency.
2.
Generally it means the currency to which other currencies are compared. In a multicurrency liquidity arrangement, refers to the currency in which the master account is denominated and to which all other currencies are converted.
The base currency also serves as the basis for all interest rate calculations.
