Foreign Exchange Quotation:

A foreign Exchange quotation (or quote) is a statement of willingness to buy or sell at an announced rate.

01.  European Quote: The foreign currency price of one dollar

   Example: BDT 75.2525/$, read as BDT 75.2525  per dollar

02.  American Quote: The dollar price of a unit of foreign currency

Example: $0.0133/BDT, read as 0.0133 dollars per BDT

03.  Direct Quote: A foreign exchange rate quoted as the domestic currency per unit of the foreign currency.

Direct quotation: 1 unit  of foreign currency = x Number of home currency

Example: $1 = Tk81.7535 is a direct quote in Bangladesh

04.  Indirect Quote:  A foreign exchange rate quoted as the foreign currency per unit of the domestic currency.

In an indirect quote, the foreign currency is a variable amount and the domestic currency is fixed at one unit. 

Indirect quotation: 1 unit of home currency = x Number of foreign currency units

For example:  Tk 1 = $ 0.0123 is an indirect quote in Bangladesh,

 


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