Indirect pricing method is also called quantity pricing method.

It is a way to express the exchange rate of a certain unit of domestic currency in foreign currency. Generally speaking, how many foreign currencies can be exchanged for the local currency of 1 unit or 100 unit?

The more valuable the local currency is, the more foreign currencies can be converted in the unit local currency, and the greater the exchange rate value; On the other hand, the less valuable the local currency is, the less foreign currency can be converted into local currency, and the smaller the exchange rate value is.

Under the direct quotation, the fluctuation of foreign exchange rate is directly proportional to the change of domestic currency value: the local currency appreciates and the exchange rate rises; The local currency depreciated and the exchange rate fell.

The former Commonwealth countries often use indirect pricing method, such as Britain, Australia and New Zealand. The exchange rates using indirect pricing method in the market mainly include British pound against the US dollar and Australian dollar against the US dollar.

Other related:

direct quotation

A pricing method of exchange rate is to convert each unit of foreign currency into several domestic currencies to express the exchange rate.

Indirect pricing method

A method of exchange rate quotation is to convert the domestic currency of each unit into several foreign currencies to express the exchange rate. Some people also call it quantity quotation.

Generally speaking, in the international market, USD and GBP are indirectly priced, while other currencies are directly quoted.

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