- This topic has 1 reply, 2 voices, and was last updated 6 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘currency rate’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › currency rate
in direct quote selling would be lower,buying will be higher,indirect vice versa.why selling is not always higher??may i know the logic in it
if direct quote is given ie;local currency /foreign currency cant we make the quote indirect dividing it by by 1??
foreign currency- $ local- pound 1.3167 pound /$
can we make indirect 1/1.3167? —>0.759$/pound
First, direct and indirect don’t mean anything without knowing which country you are in.
As to which rate to use – I spend a lot of time on this in my first lecture on foreign exchange risk management, and explain the logic.
With regard to changing the quote against one currency into a quote against the other currency – yes, you divide the quote into 1, and your example is correct.