The rise and fall of the exchange rate payable is inversely proportional to the value of the local currency against the foreign currency, that is, if more local currency is needed to be converted into foreign currency with the original standard amount, it means that the foreign currency exchange rate is rising and the local currency exchange rate is falling. On the contrary, if the original amount that can be converted into foreign currency is less, it means that the foreign exchange rate tends to be weak, and from the perspective of local currency, it means that the local currency tends to be strong.
Direct quotation is also called GivingQuotation. This pricing method is based on the foreign currency of a certain unit and converted into the domestic currency of several units. It is equivalent to calculating how much local currency should be paid for purchasing a certain unit of foreign currency, so it is called the payable price method.
Under direct quotation, foreign currency is used as the benchmark currency and local currency is used as the pricing currency; The amount of mark currency (domestic currency) changes with the change of foreign currency or domestic currency. Most countries in the world, including China, adopt direct quotation. In the international foreign exchange market, Japanese yen, Swiss franc and Canadian dollar are all direct quotations.
The more valuable the local currency is, the less local currency can be exchanged for one unit of foreign currency, and the smaller the exchange rate value is; On the other hand, the less valuable the local currency is, the more it can be converted into foreign currency, and the greater the exchange rate value. In the direct quotation, the smaller amount is the foreign exchange buying price and the larger amount is the foreign exchange selling price, with a difference of 2-5 points. Some price tags only indicate the middle price.
The main influence of direct speech:
1, under the direct quotation, if a unit's foreign currency converted into cost currency is more than the previous period, it means that the value of foreign currency has increased or the value of local currency has decreased, which is called the rise of foreign exchange rate; Some people like to set the bill of quantities first (bill of quantities mode), which is what your teacher said. Another way is to set the list quota while defining, which is a pure practice mode.
On the other hand, if you want to use less local currency than before, you can convert it into equivalent foreign currency, that is to say, the decline of foreign currency value or the increase of local currency value is called the decline of foreign exchange rate, that is, the value of foreign currency is directly proportional to the rise and fall of exchange rate.