It is a way to express a unit's foreign currency exchange rate in domestic currency. Generally speaking, foreign currency of 1 unit or 100 unit can be converted into local currency. 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. Under the direct quotation, the fluctuation of foreign exchange rate is inversely proportional to the change of the value of domestic currency: the local currency appreciates and the exchange rate declines; The local currency depreciates and the exchange rate rises. Most countries use direct quotation. Most of the exchange rates in the market are also directly quoted exchange rates. Such as: US dollar against Japanese yen, US dollar against Hong Kong dollar, US dollar against RMB, etc.

Indirect pricing method

Refers to the calculation of how much foreign currency is receivable based on the local currency of a company. Under the indirect pricing method, the higher the exchange rate, the more foreign currency convertible per unit local currency, the appreciation of local currency and the depreciation of foreign currency; On the contrary, the opposite is true. Such as the pound against the dollar, the euro against the dollar and the Australian dollar against the dollar.