From the perspective of actual exchange:
1. are all directly priced: USD/JPY =120 ~120.1; DEM/JPY=66.33~66.43 If you need to change DEM from USD to JPY, change USD to JPY first, and then change DEM. Dollars are exchanged for Japanese yen, and banks buy dollars and sell Japanese yen at the price of 120; Japanese yen is exchanged for Deutsche Mark, and the bank buys Japanese yen and sells it at the price of 1/66.33. Finally, the US dollar is exchanged for Deutsche Mark at the price of 120/66.33, and the bank sells Deutsche Mark and buys US dollars for Deutsche Mark. On the other hand, if DEM is converted into Japanese yen, the bank will sell Japanese yen, buy DEM at the price of 1/66.43, change Japanese yen into US dollars, and the bank will buy Japanese yen, sell US dollars at the price of1120.1,and finally change DEM into US dollars,1.
2. Cross exchange rate: the same idea.
Reserve exchange rate: according to different exchange rate setting methods, exchange rates can be divided into base exchange rate and reserve exchange rate. The base exchange rate refers to the ratio of the value of domestic currency to the value of key currencies to determine the exchange rate. Key currency refers to the freely convertible currency which is widely used in China's international payments and accounts for the largest proportion of foreign exchange reserves. The dollar is the most widely used currency in the world, so most countries regard it as a key currency. Arbitrage exchange rate refers to the exchange rate obtained by arbitrage of other exchange rates according to the basic exchange rate, also known as exchange rate. How to calculate the arbitrage exchange rate: For example, on a certain day, the basic exchange rate of RMB against USD in China is determined as 1 USD = RMB in 3.2 yuan, while the foreign exchange market in London is 1 GBP = 1 USD, then the exchange rate of RMB against GBP can be calculated as 1 GBP = 3.2× 65438 according to the basic exchange rate and foreign exchange market.
Rules and principles of arbitrage exchange rate: Arbitrage exchange rate The exchange rate between local currency and other foreign currencies is calculated according to the parity of the relevant currencies, and the exchange rate thus obtained is the cross exchange rate. From the perspective of exchange rate system, it can be divided into: fixed exchange rate and floating exchange rate, fixed exchange rate, that is, foreign exchange rate is basically fixed. The fluctuation range of exchange rate is limited to a very small range. Floating exchange rate means that the exchange rate fluctuates freely with the change of supply and demand in the foreign exchange market.