Cross exchange rate affects www.jhusd.com/channels/129.html. In the international market, almost all currencies have exchange rates against the US dollar. The exchange rate of one non-US dollar currency to another non-US dollar currency often needs to be calculated by these two exchange rates against the US dollar, and this calculated exchange rate is called cross exchange rate. A remarkable feature of cross exchange rate is that one exchange rate involves the exchange rate between two non-US dollar currencies. Through the above process, we can see the impact on the US dollar. Therefore, the cross exchange rate is also a very important data indicator. Similar principles and topics are sent to you for a look.

How to calculate cross interest rate and exchange rate: Also known as cross exchange rate, it refers to the exchange rate between domestic currency and non-key currency calculated by countries after setting the basic exchange rate and referring to major foreign exchange markets.

Simple and easy-to-remember calculation method of exchange rate arbitrage (original)

I. Cross-sectoral:

For example, we know that:

The exchange rate between USD and JPY is USD/JPY = A/B (1).

The exchange rate between USD and HKD is USD /HKD=c/d ②.

Now ask:

Exchange rate between Japanese yen and Hong Kong dollar Japanese yen /HKD=?

We observe that the left side of the "/"red slash in formulas ① and ② is the same currency USD, so we can calculate the exchange rate by cross division:

(USD /HKD)/ (USD/JPY) =(c/b)/(d/a), from which the exchange rate between JPY and HKD is deduced: JPY /HKD=(c/b)/(d/a).

(Note: The cross division here refers to the cross division of the number on the right side of the equal sign)

Similarly, we know that:

The exchange rate between Australian dollar and US dollar is AUD/USD=A/B③.

The exchange rate between NZD and USD is NZD/USD = C/D 4.

Now ask:

NZD/AUD= exchange rate between New Zealand dollar and Australian dollar?

We observe that the right side of the red slash "/"in formulas ③ and ④ is the same currency USD, so we can calculate the exchange rate by cross division:

(NZD/USD)/(AUD/USD)/ =(C/B)/(D/A), from which the exchange rate NZD/AUD=(C/B)/(D/A) between the New Zealand dollar and the Australian dollar is deduced.

From the above, we summarized the most memorable calculation methods in exchange rate calculation. First, we observe the known conditions, such as the following formula.

USD/JPY =a/b ① AUD/USD =A/B③

USD/HKD = CAD /d2 or NZD/USD = CAD /d4.

It is found that the left side of the red slash "/"in formulas ① and ② is USD； with the same currency;

The right side of the red slash "/"in formulas ③ and ④ is USD； in the same currency;

At this time, the formula for calculating the exchange rate between Japanese yen and Hong Kong dollar or Australian dollar and New Zealand dollar is summarized as follows: When the names of the two currencies on the left or right are the same, cross division is used.

In-phase multiplication:

For example, USD/JPY =e/f ⑤ AUD/USD =E/F ⑦.

HKD/ USD = JPY ⑥ or USD/NZD = JPY ⑧.

We can observe that both ends of the diagonal line on the left of the equal sign of Formula ⑤ and Formula ⑤ are USD, and the currency names are the same. Therefore, when calculating the arbitrage exchange rate of yen /HKD, we use in-phase multiplication, that is, (USD/JPY) *(HKD/ USD) =(e/f)*(h/i), from which we derive JPY /HKD =.

In the same way, both ends of a diagonal line on the left of the equal sign of Formula ⑦ and Formula ⑧ are US dollars with the same currency name. Therefore, when calculating the exchange rate of AUD/NZD, the same phase multiplication is adopted, that is, (AUD/USD) * (USD/NZD) = (E/F)*(H/I), from which the AUD is derived.

The formula is summarized as follows: If the currency names at both ends of a diagonal line on the left side of the equal sign are the same, they are multiplied in the same direction, that is, the left side of the equal sign times the left side = the right side of the equal sign times the right side.