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Good day.
Silly question:
If in UK exchange rates are: 2$/pound = 2.5$.pound
is it true that at the same time USA exchange rates are 0.4 pounds / $ – 0.5 pounds / $
How are these rates called in real life? Not a cross rate as far as I remember.
Thank you for your time sir.
Exchange rates are always quoted as the amount of one currency that is equal to one unit of the other currency and the can be quoted either way round – there is no special name for either.
So is the exchange rate is quoted against the GBP, and is $2 to the pound, then is means $1 is equal of GBP 0.5, and if the exchange rate is quoted against the $ is is 0.5$’s to the pound.
It will help you to watch my free lectures on this – I go through examples on exchange rates in the first of my lectures on foreign exchange risk management.
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