Under the indirect pricing method, a decrease in the exchange rate means the local currency depreciates; in the direct pricing method, an increase in the exchange rate means a depreciation of the local currency, and vice versa.

The indirect pricing method is a method of expressing the exchange rate of a certain domestic currency against a number of foreign currencies. Under this pricing method, a decrease in the exchange rate means that the number of foreign currencies that can be exchanged for a certain amount of domestic currency decreases, so the local currency depreciates and the foreign currency appreciates. . In the previous answer, if we take the position of the United States and consider the US dollar as the domestic currency and the RMB as the foreign currency, the example is acceptable. Usually only a few currencies such as US dollars and pounds adopt the indirect quoting method

The indirect quoting method (Indirect Quotation Method) is also called the receivables quoting method. It refers to a pricing method that uses a certain unit of domestic currency as the basis and converts it into a certain amount of foreign currency. That is, the domestic currency is used as the base currency, and its amount remains unchanged, while the amount of the quoted currency (foreign currency) changes with changes in the value of the domestic currency or foreign currency. The United Kingdom and the United States are both countries that adopt the indirect pricing method.