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What are the unit currency and pricing currency in the forward exchange rate price list?
The monetary unit is the name of the currency stipulated by the state. English interpretation: monetary unit; Monetary unit; Monetary unit.

Two pricing methods of exchange rate

1. Direct quotation

Direct quotation is also called payable pricing method, that is, the pricing method of converting a unit's foreign currency into several units' domestic currencies according to the standard (one, one hundred, ten thousand and other integers). When using this method, the rise of exchange rate means that unit foreign exchange can be exchanged for more domestic currency. Most countries in the world adopt the direct quotation method, including China.

2. Indirect pricing method

Indirect pricing method, also known as accounts receivable pricing method, refers to the pricing method of converting foreign currency accounts receivable of several units based on the local currency of the unit. When using this method, the rising exchange rate means that the domestic currency can be exchanged for more foreign currencies. At present, only a few countries in the world adopt indirect pricing method, such as the United States and Britain. The exchange rates under these two pricing methods are mutual. Spot exchange rate and forward exchange rate. According to the delivery period of foreign exchange transactions, exchange rates can be divided into spot exchange rates and forward exchange rates. The so-called delivery means that the buyer and the seller perform the transaction contract, giving and receiving money and goods. The delivery of foreign exchange transactions refers to the behavior that the buyer pays the domestic currency and the seller pays the foreign exchange. Due to different delivery dates, the exchange rate is different.

Spot exchange rate, also known as spot exchange rate, is the exchange rate used by buyers and sellers for foreign exchange delivery within two business days after the transaction.

Forward exchange rate, also known as forward exchange rate, is the exchange rate agreed by buyers and sellers in advance for foreign exchange delivery on a certain date in the future.

Generally speaking, the pricing method of forward exchange rate is only to mark forward premium or discount. In the case of direct quotation, if the forward exchange rate is premium, it is the forward exchange rate based on spot exchange rate and premium; If it is a forward discount, subtract the discount from the spot exchange rate and it is the forward exchange rate. In the case of indirect pricing method, on the contrary, if the forward exchange rate has a premium, it is necessary to subtract the premium from the spot exchange rate, which is the forward exchange rate; If it is a forward discount, it is necessary to add the discount number to the spot exchange rate, which is the forward exchange rate.

Forward exchange rate also has buying price and selling price, so the premium or discount of forward exchange rate also has two figures. In the case of direct quotation, if the forward exchange rate is premium, the decimal of premium is added to the buying price of spot exchange rate, and the Osuka of premium is on the selling price of spot exchange rate. Under the direct quotation, if the sink is small and then large, it means that the forward exchange rate is a premium; If the catchment is large first and then small, it means that the forward exchange rate is premium. Under the indirect pricing method, if the forward exchange rate is premium, the selling price of spot exchange rate minus the large amount of premium, and the selling price of spot exchange rate minus the decimal amount of premium. In the case of indirect pricing method, if the forward premium is the largest number before decimal, it means the forward premium; If the decimal comes first and the large number comes last, it means a long-term discount.

Two. Valuation currency

Valuable currency refers to the currency agreed by both parties in the contract for calculating and paying off the creditor's rights and debts of the other party, which is generally the same as the settlement currency. If both parties only agree on the pricing currency in the contract, but not the settlement currency, then the pricing currency is the settlement currency.

Both parties to the transaction can also agree that the pricing currency is one currency and the settlement currency is another currency or even several currencies. At this time, both parties to the transaction should specify the proportion of different currencies in the contract. Therefore, when choosing which currency to use, buyers and sellers should not only consider the risk of currency exchange rate, but also make a comprehensive analysis based on their own business intentions, market supply and demand and price level.

At present, the commonly used international settlement currencies in China are: US dollar, British pound, mark, French franc, Japanese yen and Hong Kong dollar. Theoretically, RMB can also be used as the currency for pricing or settlement, but China's financial management stipulates that the external use of RMB is limited to book receipts and payments, and it cannot be freely exchanged and flowed. Therefore, at present, the currency of the other country (region) or the currency of a third country is generally selected according to the changes in the currency exchange rate of the international financial market and the habits of the importing country (region).