What is the general international exchange rate marking?

1. Direct method.

It is based on a certain unit of foreign currency to calculate how many units of national currency should be paid. The vast majority of countries in the world, including China, currently use the direct pricing method. In the international foreign exchange market, the Japanese yen, Swiss franc, Canadian dollar, etc. are all direct pricing methods, such as the Japanese yen is one dollar against the yen.

Under the direct pricing method, if the amount of local currency converted into a certain unit of foreign currency is more than that of the previous period, it means that the value of the foreign currency has risen or the value of the local currency has increased**, which is called an increase in the foreign exchange rate; Otherwise, it is called a foreign exchange rate**.

2. Indirect pricing method.

It is based on a certain unit (e.g. 1 unit) of the national currency as the standard to calculate the receivable of a number of units of foreign currency. In the international foreign exchange market, the euro, the British pound, the Australian dollar, etc. are all indirect pricing methods. For example, the euro is one euro against the US dollar.

In the indirect pricing method, the amount of the national currency remains the same, and the amount of the foreign currency changes with the relative change in the value of the national currency. If the amount of foreign currency that can be exchanged for a certain amount of local currency is less than that of the previous period, this indicates that the value of the foreign currency has risen and the value of the local currency has decreased, that is, the foreign exchange rate has increased; On the contrary, it means that the value of the foreign currency decreases and the value of the local currency increases.

The exchange rate, also known as the exchange rate, refers to the currency of one country expressed in the currency of another country**, or the comparison between the currencies of two countries.

In the foreign exchange market, the exchange rate is displayed in five digits, such as:

Euro, EUR, JPY

GBP, GBP, CHF

The minimum change in the exchange rate is in one point, which is a digit change in the last digit, such as:

Euro, EUR, JPY

GBP, GBP, CHF

According to international practice, the name of the currency is usually represented by three English letters, and the English after the above Chinese name is the English ** of the currency.

There are two types of pricing methods for exchange rates: direct pricing and indirect pricing.

1.Direct Marking Method: Direct Marking Method.

It is the exchange rate expression method of expressing a certain unit of foreign currency in the currency of the country, and most countries currently use the direct pricing method, and China also uses the direct pricing method. Generally, it is the amount of the national currency that 1 unit or 100 units of foreign currency can be converted, for example, the US dollar is 1:.

2.Indirect marking: Indirect marking: It is an exchange rate representation method that expresses a certain unit of the national currency in the currency of a foreign country.

It refers to the method of converting 1 or 100 units of local currency into foreign currency. At present, only a few countries use the indirect pricing method, such as the British pound and the euro.

Australian dollars, etc. For example, the British pound.

The exchange rate to Chinese Yuan is 1:.

Extended information: 1. Exchange rate, also known as foreign exchange rate, foreign exchange rate or foreign exchange market.

It refers to the ratio of exchange between two currencies and can also be regarded as the value of one country's currency against another.

Specifically, it refers to the ratio or ratio of one country's currency to another country's currency, or the ** of another country's currency expressed in one country's currency.

Exchange rate changes have a direct regulating effect on a country's imports and exports**. Under certain conditions, by depreciating the national currency externally, that is, letting the exchange rate fall, it will play the role of promoting exports and restricting imports. On the contrary, the appreciation of the national currency to the outside world, that is, the exchange rate rises, which plays a role in restricting exports and increasing imports.

The exchange rate (also known as the foreign exchange rate, foreign exchange rate or foreign exchange market) is the ratio of exchange between two currencies, which can also be regarded as the value of one country's currency against another. The exchange rate, in turn, is a financial means used by various countries to achieve their political goals. The exchange rate fluctuates due to interest rates, inflation, the politics of the country, and the economy of each finger country.

The exchange rate is determined by the foreign exchange market. The foreign exchange market is open to different types of buyers and sellers for extensive and continuous currency trading (foreign exchange trading takes place 24 hours a day except weekends, i.e. from 8:15 GMT on Sunday to 22:05 GMT on Friday

00。The spot rate refers to the current exchange rate, while the forward exchange rate.

refers to the exchange rate at the current ** price and transaction, but paid at a specific date in the future).

The rise and fall of a country's foreign exchange market, the import and export ** and economic structure.

production layout, etc. The exchange rate is the most important adjustment lever in the world, and the decline of the exchange rate can play a role in promoting exports and suppressing imports.

The relative value of a country's currency (paper money) was determined by the amount of reserves in that country, which we call the gold standard.

After World War II, the U.S. dollar was forcibly pegged to **, and other currencies were also pegged to the U.S. dollar (in fact, they were all pegged to **), which formed the Bretton Woods monetary system, that is, the global monetary system with the U.S. dollar as the main body.

After the 1970s, the Bretton Woods monetary system collapsed, and the floating exchange rate replaced the fixed exchange rate system. Later, everyone thought that this did not meet the needs of national or regional economic development, so the purchasing power parity was used to determine the exchange rate of the currency, of course, the purchasing power parity theory can only theoretically explain the exchange rate of the currency, and the market exchange rate is another thing, so after the mid-1980s, the purchasing power parity theory was replaced by the neoclassical theory (**, interest rate differential, comprehensive evaluation of the amount of central bank bills).

All of this is a theoretical pricing of the exchange rate.

In the mid-1970s, the theory of financial market transactions was rapidly established, which included the redefinition and practical verification of the efficiency market theory (the theory of market all-encompassing), the establishment and practical verification of the theoretical model of option pricing, and the management theory of modern banking and global finance

1. The currency issuing authority's mandatory exchange rate pricing of the currency and the range of fluctuations allowed in this pricing, such as RMB, New Taiwan dollar, Hong Kong dollar, Malaysian ringgit, Argentine peso, etc., although these currencies are not circulating, they still have to be exchanged under the first conditions; As for fully freely convertible currencies, such as the yen, the euro, the pound sterling, etc., although their issuing authorities do not enforce the exchange rate and the fluctuation range of the exchange rate, they will have a bottom line, what is the highest and lowest exchange rate of the currency, beyond the bottom line, the currency issuing authority or the closest **partner** will intervene, the most obvious is the yen, when the yen is close to 100, Japan ** will intervene, and when the yen exceeds 130, The rest of Asia will be unhappy and will negotiate with Japan, or even quietly raise a large amount of yen themselves.

2. In the market, large institutions and banks determine their exchange rates according to their foreign exchange assets and market risks, interest rate risks, policy risks and other factors, because financial institutions should ensure the safety and liquidity of their funds.

The reason why the currencies of various countries can be compared and can form a comparison relationship with each other is that they all represent a certain amount of value, which is the basis for determining the exchange rate.

Under the gold standard, ** is the standard currency. The monetary units of two countries on the gold standard can determine the price of each other, i.e., the exchange rate, according to the amount of gold they contain.

For example, when the gold standard system was implemented, the British stipulated that the weight of 1 pound sterling was a ring, and the fineness was 22 carreams of gold, that is, the gold content was pure gold; The United States stipulates that the weight of 1 US dollar is a grain ring, and the fineness is 900 thousandths, that is, the gold content is pure gold. According to the comparison of the gold content of the two currencies, 1 pound = US dollar, and the exchange rate fluctuates up and down on this basis.

Under the paper money system, each country issues paper money as a representative of metal currency, and with reference to the past practice, the gold content of paper money is stipulated by law, which is called gold parity, and the comparison of gold parity is the basis for determining the exchange rate of the two countries.

However, paper money cannot be exchanged for **, therefore, the legal gold content of paper money is often in vain. Therefore, in countries with official exchange rates, the exchange rate is set by the national monetary authority (Ministry of Finance, ** Bank or Foreign Exchange Administration), and all foreign exchange transactions must be carried out according to this rate. In countries with market exchange rates, the exchange rate changes with the supply and demand of currencies in the foreign exchange market.

The exchange rate has an impact on the balance of payments, national income, etc.

Exchange Rate Regime: Who Determines the Exchange Rate?

Let's say I'm in China, I see a good dollar and decide to go 1:1 with him. Produced a chair in China for 10 yuan, and wanted to sell it to the United States for dollars to buy his things, he said

$10 is too expensive, and I only need $2 for a chair like this in Japan. So I changed the exchange rate to 1:10 (USD:

RMB). $1 per handful.

To put it simply: the exchange rate is the ratio of wealth.

Let me be more layman's for you.

A long time ago, country A and country B exchanged with each other, and they all used *** as currency, if they were all gold coins of the same color as currency, then there was no problem of exchange, and the exchange rate was 1:1

Later, country A came up with a bad idea and replaced all the fineness of ** with the original general, so the businessmen of country B were not stupid, and when they came to country A to exchange, they exchanged a B currency for 2 A currency, so that the exchange rate was 2:1, so the concept of exchange rate was born.

Later, the times are developing, and it is time for paper money, what is the value of that broken paper, in fact, paper money is national credit, so what does national credit rely on to support it? One is to rely on the wealth owned by the country, and the other is to rely on the stability of the political situation, simply understand the value of all currencies and the value of national wealth, then the exchange rate is the following formula;

Exchange rate Value of wealth of country A Value of wealth of country B Value of unit currency of country A Value of unit currency of country B.

The value of the currency in the unit of goods The wealth of the nation The number of units of currency.

Look at what affects the exchange rate, and look at what affects the wealth of the country.

1. Balance of payments. The balance of payments position is the dominant factor in determining the trend of the exchange rate. The balance of payments is the sum of various balances of payments in a country's foreign economic activities.

The two countries of AB should be each other**Oh, you can't close off the country, country A calculates from country B at the end of the year, earns money, and has a surplus. Then the wealth of country A increases and the wealth of country B decreases, so for example, it affects the change of the exchange rate, resulting in an increase in the value of the currency, that is, currency A is more valuable, and vice versa.

2. National income. For example, at the end of the year, the two countries of AB had equal revenues and expenditures, and everyone did not earn it, but the people of country A were extremely hardworking and their GDP soared, while country B could not develop well, and the GDP did not change. Then it is country A that creates more wealth for itself, and the number of unit currencies does not change, resulting in an increase in the value of the unit currency and a change in the exchange rate.

The A coin has strengthened and become more valuable. The opposite is understandable.

Third, the level of inflation. For example, at the end of the year, the income and expenditure of the two countries AB are equal, no one has earned it, and the national wealth of the two countries has not changed, but the People's Bank of China of country A has a fever and doubles the amount of money in the market, that is, the number of units of currency doubles, which is naturally inflationary, which directly leads to the value of the unit currency becoming the original 1 2, and the money is worthless, so it leads to changes in the exchange rate, and the currency A is lower, and the exchange rate is also lower, and vice versa.

Fourth, the difference in the level of interest rates. If all things are the same in AB, but the interest rate in country A is higher than that in country B, the higher interest rate will attract the inflow of foreign capital, and the people of country B will save their money in country A in order to get a higher interest rate. Obtaining a larger increase in wealth with less interest leads to an increase in the value of the unit currency, a change in the exchange rate, a currency strengthens, and the exchange rate rises.

The opposite is understandable.

Fifth, whether the political situation and social stability are easy to understand, social unrest, leading to the disappearance and flight of wealth, the reduction of social wealth, the decrease in the value of the unit currency, and the change in the exchange rate.

It is determined by the supply and demand of money. For example, if many people want to study in the United States, they must use RMB to buy US dollars, which means that the demand for US dollars has risen. Naturally, the exchange rate of the US dollar will rise relative to the renminbi.

If a large number of Americans want to set up factories in China and buy Chinese products, the yuan exchange rate will rise.

The renminbi is directly converted to the U.S. dollar in the form of 100 U.S. dollars to renminbi.

China's exchange rate mainly adopts two pricing methods:

1. Direct pricing method: It is to use foreign currency to express the local currency, that is, how many units of foreign currency can be converted into a unit of local currency. Example: $1 =

2. Indirect pricing method: It is to use the local currency to express the foreign currency, that is, how many units of foreign currency can be converted into a unit of local currency. Example: 1 RMB = US Dollar.

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