10.2 The Determination of The Exchange Rate O conclusion exchange rate is determined by the price of the two countries. The price of one country rise, its currency will be depreciated vice versa 复表经济学院
10.2 The Determination of The Exchange Rate conclusion：exchange rate is determined by the price of the two countries. The price of one country rise, its currency will be depreciated; vice versa
10.2 The Determination of The Exchange Rate o Quotations and the method of quoting price of exchange rate quotations Use some currency as the standards of other currencies when weighing the price Because the market of exchange rate can be divided into wholesale market between the international banks and the retail market between bank and customers then the method of quotation is different 复表经济学院
10.2 The Determination of The Exchange Rate Quotations and the method of quoting price of exchange rate ❖ quotations： Use some currency as the standards of other currencies when weighing the price. Because the market of exchange rate can be divided into wholesale market between the international banks and the retail market between bank and customers I, then the method of quotation is different
10.2 The Determination of The Exchange Rate o Quotations and the method of quoting price of exchange rate ⊙ Two methods: Direct quotation Indirect quotation 复表经济学院
10.2 The Determination of The Exchange Rate Quotations and the method of quoting price of exchange rate Two methods： Direct quotation Indirect quotation
10.2 The Determination of The Exchange Rate ⊙ direct quotation: .s Using the domestic currency to represent the price of foreign currency, such as$1=RMB￥8.2340。 o Indirect quotation: o Using foreign currency to represent the domestic price, such as in England, f1=DM2. 4132o .s Although the two quotation methods of exchange rate are different, they are reciprocal to each other in one country. To A country, S(B/A) is the direct quotation then S(A/B)is the indirect quotation 复表经济学院
10.2 The Determination of The Exchange Rate direct quotation ： ❖ Using the domestic currency to represent the price of foreign currency，such as ＄1＝RMB￥8.2340。 indirect quotation： ❖ Using foreign currency to represent the domestic price, such as in England, ￡1＝DM2.4132。 ❖ Although the two quotation methods of exchange rate are different ,they are reciprocal to each other in one country. To A country, S(B/A) is the direct quotation， then S(A/B) is the indirect quotation
10.2 The Determination of The Exchange Rate o Quotations and the method of quoting price of exchange rate Quoting price: Is the price willing to buy or sale the exchange rate from the foreign exchange bank to other banks and customers in a certain quotation method 复表经济学院
10.2 The Determination of The Exchange Rate Quotations and the method of quoting price of exchange rate ❖ Quoting price： Is the price willing to buy or sale the exchange rate from the foreign exchange bank to other banks and customers in a certain quotation method