In the foreign exchange relations with a fraction, do we always have the quoted currency (the "one") in the denominator?作者: spreads 时间: 2011-7-11 19:56
What do you mean?
Like: AED 3.675/$作者: ap0258 时间: 2011-7-11 19:56
For example, with PPP:
S1 / S0 = 1+I DC / 1+I FC
The currency (FC) in the denominator is the quoted currency (FCC).
I am looking for a general rule to define the currency in the denominator and believe it is true that it is always the quoted currency. Can anyone confirm this?作者: FinancialAnaly 时间: 2011-7-11 19:56
Yes that is correct.
For eg:
So if you have $3.345/Euro which is equal to 1Euro3.345
be sure that the $ will be in the numerator and euro will be in the denominator