Indirect quote

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Revision as of 23:00, 21 March 2015 by imported>Doug Williamson (Add example.)
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A foreign exchange rate quotation where the foreign currency amount is divided by the quoted rate, in order to calculate the domestic currency equivalent.


Example

From the perspective of a EUR-based entity, the exchange rate EUR 1 = 1.25 USD would be an indirect quote.

USD 100m would be worth:

100 / 1.25

= EUR 80m.


See also