Of course, the local currency exchange rate is the price of local currency expressed in foreign currency.
For example: 1 USD =6.84463 yuan.
The foreign exchange rate is 1 USD = 6.84463 RMB.
The local currency exchange rate is 1 RMB pair 1/6.84463 USD.
The formula of local currency exchange rate is100 RMB =x RMB = x foreign currency.
Difference between foreign currency exchange rate and local currency exchange rate;
1, the concept is different: the exchange rate of local currency is to measure the price of local currency with foreign currency. Foreign currency exchange rate is the exchange rate between foreign currency and local currency in the international foreign exchange market.
2. Different pricing methods: the local currency exchange rate is equivalent to the direct quotation in the exchange rate pricing method. Foreign currency exchange rate is equivalent to direct quotation method and indirect pricing method in exchange rate pricing method.
3. Different amount changes: Foreign currency exchange rate In foreign exchange transactions, the local currency value expressed by indirect pricing method is fixed, and the fluctuation of exchange rate is expressed by the change of foreign currency amount. The amount of domestic currency varies with the value of foreign currency.
Precautions:
1. Other factors being the same, if RMB per unit can be exchanged for more foreign currencies, it means that RMB exchange rate will rise, RMB will appreciate relative to a foreign currency, foreign currency will depreciate, and foreign exchange rate will fall, which is beneficial to China's imports and unfavorable to exports.
2. If the unit amount of RMB can be exchanged for a small amount of foreign currency, it means that the RMB exchange rate drops and the RMB depreciates relative to a foreign currency, while the foreign currency appreciates and the foreign exchange rate rises, which is beneficial to China's exports but not to imports.
3. When 100 unit of foreign currency can be exchanged for more RMB, the foreign exchange rate will rise, the foreign currency will appreciate relative to RMB, and the RMB will depreciate, that is, the price of foreign currency expressed in RMB will rise, which is beneficial to China's exports but not to imports. On the other hand, it shows that the decline of foreign exchange rate, the depreciation of foreign currency against RMB and the appreciation of RMB are beneficial to China's imports and unfavorable to its exports.
Baidu encyclopedia-foreign currency exchange rate
Baidu encyclopedia-local currency exchange rate