Foreign exchange rate is the rate, parity or price at which one country's currency is converted into another country's currency; It can also be said that foreign currency is the "price" expressed in domestic currency. Because of international trade and non-trade exchanges, countries need to handle international settlement, so a country's currency has an exchange rate against other countries' currencies, but the most important thing is the exchange rate against a few countries' currencies such as the US dollar.
2. Exchange rate pricing method
To convert the currencies of two countries, we must first determine which country's currency shall prevail. Due to different standards, there are two quotation methods for foreign exchange rates.
Direct quotation is based on the foreign currency of 1 unit or 100 unit and converted into a certain amount of local currency. Under direct quotation, the amount of foreign currency is fixed, while the amount of local currency changes with the change of the value of foreign currency or local currency. Most countries use direct quotation. In some countries, the value of monetary units is relatively low, such as Japanese yen and Italian lira. At present,100,000 or10,000 is sometimes used as the conversion standard.
The indirect quotation is based on the domestic currency of 1 unit or 100 unit and converted into a certain amount of foreign currency. Under the indirect pricing method, the local currency amount is fixed, while the foreign currency amount changes with the change of the local currency or foreign currency value. Britain and the United States are both countries that adopt indirect pricing method.
3. Buying exchange rate, selling exchange rate and intermediate exchange rate
Foreign exchange transactions are generally concentrated in financial institutions such as commercial banks. The purpose of buying and selling foreign exchange is to pursue profits. The way is to buy cheap and sell expensive to earn the bid-ask difference. The exchange rate of foreign currency purchased by commercial banks and other institutions is called "bid price", also known as "bid price". The exchange rate of selling foreign currency is called "selling price", also called "selling price". The difference between the buying price and the selling price is generally from one thousandth to five thousandths, which varies from country to country. The difference between the two is the profit of commercial banks buying and selling foreign currency. Add the buying exchange rate and the buying exchange rate and divide by 2, which is the middle price.
The foreign exchange quotation listed in the foreign exchange market generally includes the buying price and the selling price. In direct quotation, a number in local currency after a foreign currency indicates the "purchase price", that is, the number in local currency paid to customers when the bank buys foreign currency; The last digit of the bookkeeping base currency is the "selling price", that is, the number of bookkeeping base currency charged to customers when the bank sells foreign currency. Under the indirect fare method, the situation is just the opposite. The first foreign currency number after the local currency is the "selling price", that is, when the bank receives a certain amount of local currency (1 or 100) to sell foreign currency, it will pay the foreign currency to the customer. The latter foreign currency figure is the "buying price", that is, when the bank pays a certain amount of local currency (1 or 100) to buy foreign currency, it collects foreign currency from customers.
The exchange rate rise mentioned in the direct quotation of economic newspapers and periodicals shows that foreign currency is expensive, so more local currency is exchanged than before, and less local currency is exchanged for foreign currency. The exchange rate of foreign currency has fallen, but the opposite is true.
4 factors affecting exchange rate changes
The real value represented by the two currencies is the basis of exchange rate determination, and the exchange rate is constantly changing under the influence of the following main factors.
(1) balance of payments: foreign trade balance plays a decisive role in exchange rate changes. Foreign trade surplus, the local currency exchange rate will rise; On the contrary, it will fall. The balance of foreign trade directly affects foreign exchange supply and demand.
(2) Inflation: It is not only directly related to the actual value and purchasing power of the currency itself, but also related to the external competitiveness of commodities and the psychological impact on the foreign exchange market. When inflation slows down, the local currency exchange rate will rise; On the contrary, it will fall.
(3) The influence of interest rate level on capital flow: Under certain conditions, high interest rate level can attract international short-term capital inflows and raise the exchange rate of local currency; Low interest rates are the opposite. The dollar strengthened in the first half of 1980s, which was the result of the high interest rate policy in the United States.
(4) Exchange rate policies of various countries: Although exchange rate policies cannot change the basic trend of exchange rates, the role of further measures taken by a country to aggravate the decline or rise of its local currency exchange rate according to the trend of its own currency cannot be underestimated.
(5) Speculation: especially foreign exchange speculation by multinational companies. Sometimes it can make the exchange rate fluctuation exceed the expected reasonable range.
(6) Political events: Sudden major political events in the world also have a significant impact on exchange rate changes.
The relationship between the above factors is complicated: sometimes various factors come together and work at the same time; Sometimes personal factors play a role; Sometimes the effects of various factors cancel each other out; Sometimes the main function of one factor is suddenly replaced by another. Generally speaking, in a long time (such as one year), the balance of payments is an important factor to determine the basic trend of the exchange rate; Inflation and exchange rate policies only play a subordinate role-enhancing or weakening the role played by the balance of payments; Speculation is not only a comprehensive reflection of the above factors, but also plays a role in fueling the exchange rate trend determined by the balance of payments, aggravating the fluctuation range of the exchange rate; In recent years, under certain conditions, the interest rate level also plays an important role in the fluctuation of a country's exchange rate.
6. Exchange rate conversion and import and export quotation
1, foreign currency conversion (exchange) calculation and spot exchange rate quotation
(1) Convert foreign currency/local currency into local currency/foreign currency.
The exchange rate table published by the foreign exchange market of a country or region is usually that 65,438+0 or 65,438+000 foreign currencies are equal to the number of local currencies, but the number of foreign currencies equal to 65,438+0 local currencies is not published. If a foreign importer asks me to quote the price of export commodities in my local currency and then quote the price of foreign currency, I can get the foreign currency converted from 1 by dividing it by the specific figure of my local currency.
(2) Foreign currency/local currency purchase price is converted into local currency/foreign currency purchase price.
Know the buying price of foreign currency to local currency, and find the buying price of local currency to foreign currency.
(3) Unlisted foreign currency/local currency and local currency/unlisted foreign currency arbitrage
Find the price comparison between local currency and unlisted currency by:
① First, list the intermediate exchange rate of local currency against a listed major reserve currency. (2) Inquire about the intermediate exchange rate of pound or dollar against an unlisted currency in major international financial markets such as London and new york (both London and new york publish the exchange rates of pound or dollar against all convertible currencies). ③ The intermediate exchange rates of ① and ② are used for arbitrage: ② divided by ①, that is, ②/① = exchange rate of local currency/unlisted foreign currency; ① Divided by ② means ①/② = the price of unlisted foreign currency/local currency.
(4) Convert local currency /A foreign currency and local currency /B foreign currency into a foreign currency /B foreign currency and b foreign currency /A foreign currency.
The foreign quotation of an export commodity often involves many countries and currencies, so it is necessary to master the calculation method between different foreign currencies in order to expand the quotation range and open up the commodity market. If known: ① the buying price and selling price of local currency to foreign currency A; (two) the buying price and selling price of the local currency to the second foreign currency; How to calculate: ① 1 the buying and selling price of foreign currency A against foreign currency B, ② 1 foreign currency B against foreign currency A.
(5) The spot exchange rate table is also the main basis for determining the acceptable level of import quotation. Arbitrage (exchange) calculation using spot exchange rates of different currencies not only plays an extremely important role in the formulation of export quotations, but also plays an important role in accounting whether import quotations are reasonable and acceptable.
① According to the RMB exchange rate table, the import quotations of the same commodity in different currencies are converted into RMB for comparison.
② According to the spot exchange rate table of the international foreign exchange market, compare the import quotations of the same commodity after unified conversion in different currencies.
2. Reasonable use of exchange rate buying price and selling price
In general, the difference between the buying price and the selling price of the exchange rate is 1 ‰ ~ 3 ‰. When importers and exporters convert commodity prices into foreign quotations and fulfill their payment obligations, they will suffer losses if they are not fully considered, the calculation is not rigorous and the contract terms are not clear. When using the buying price and selling price of the exchange rate, we should pay attention to the following questions:
(1) When the local currency is converted into foreign currency, the purchase price should be used.
If Hong Kong exporters' reserve price is originally in local currency (Hong Kong dollars), but customers require to quote in foreign currency, they should convert it according to the purchase price of local currency and foreign currency. The reason why the exporter converts the local currency into foreign currency at the purchase price is because the exporter needs to sell the received foreign currency to the bank and change it into the original local currency. The exporter sells foreign currency and is bought by the bank, so it is converted at the purchase price.
(2) When foreign currency is converted into local currency, the selling price should be used.
The exporter's reserve price is originally in foreign currency, but when the customer requests to quote in local currency, it must be converted according to the selling price of foreign currency and local currency. The reason why exporters convert foreign currency into local currency at the selling price is that exporters used to collect foreign currency, but now they collect local currency, so they need to use local currency to buy back the original foreign currency from the bank. What the exporter buys is what the bank sells. So it is converted according to the selling price.
(3) Converting one foreign currency into another, and making the exchange according to the quotation in the international foreign exchange market.
Whether quoted in the direct pricing market or the indirect pricing market, the currency of the country where the foreign exchange market is located is regarded as the local currency. If foreign currency is converted into local currency, the selling price is used; If the local currency is converted into foreign currency, the purchase price is used. For example, in the ×× year × month × day × month × day × month × day × month × day × month × day × month × day × month × day × month × day × month × day × month × day × month × month × day × month × month × day × month × day × month × day × month × month × day × month × day × month × month × day × month × month × month ×
(1) According to the Paris foreign exchange market (direct price):
1 USD is equivalent to 1×4.4550=4.4550.
1 French franc is equivalent to 1÷4.4350=0.2255.
② According to new york foreign exchange market quotation (indirect quotation):
1 French franc is equivalent to 1÷4.4400=0.2252.
1 USD is equivalent to 1×4.4450=4.4450.
The above conversion principle of buying price and selling price applies not only to spot exchange rate, but also to forward exchange rate. The conversion of buying price and selling price is a principle that foreign trade workers should master, but they should master it flexibly according to the specific situation in actual business. For example, the competitiveness of export commodities is poor, the inventory is large, the styles are outdated, and the market is sluggish. At this time, the export quotation can also be converted according to the middle price, and even be appropriately discounted to expand commodity sales; However, practitioners should be "aware" of this principle.
3. Conversion between forward exchange rate and import and export quotation
(1) Convert the local currency/foreign currency forward exchange rate into foreign currency/local currency forward exchange rate. If the local currency/foreign currency forward exchange rate is known, it is necessary to calculate the foreign currency/local currency forward exchange rate for quotation or hedging. The calculation procedure and method are as follows:
① Substitute into the formula:
P*=P/(S×F)
P* refers to the forward points when local currency/foreign currency is converted into foreign currency/local currency.
P is the local currency/foreign currency of the forward point.
S is the spot exchange rate of local currency/foreign currency.
F is the actual forward exchange rate of local currency/foreign currency.
(2) After calculating the selling point and buying point of the forward exchange rate according to the formula, their positions should be reciprocal, that is, the calculated buying point becomes the selling point; The calculated sales price point becomes the purchase price point.
(2) The number of forward discounts (points) in the exchange rate table can be used as the quotation standard for deferred collection.
The premium currency in the forward exchange rate table is the appreciation currency and the discount currency is the depreciation currency. In my export trade, foreign importers asked me to quote in two foreign currencies on the condition of deferred payment. If A is premium, B is discount, and A is quoted at the original price. If you quote in B currency, you should quote according to the actual exchange rate after converting B currency into A currency in the exchange rate table, so as to reduce the loss after converting B currency. Therefore, it is of great significance to learn to consult and calculate the exchange rate table for correct quotation.
(3) The annual discount rate in the exchange rate table can also be used as the quotation standard for deferred collection.
The discount currency in the forward exchange rate table is the currency with depreciation trend, and the annual discount rate of this currency is the annual depreciation rate of the discount currency (for premium currencies). If a commodity is originally quoted in hard (premium) currency, but foreign importers require it to be quoted in discounted currency, the exporter should convert the premium currency amount into discounted currency amount according to the spot exchange rate, and at the same time, in order to make up for the discount loss, the discount rate should be added to the converted commodity price in a certain period of time.
(4) In the import quotation of a soft currency and a hard currency, the forward exchange rate is the basis for determining the price increase of soft goods (discounted currency).
For example, in import business, it takes about three months for a commodity to be paid in foreign exchange from signing a contract. Foreign exporters quote in hard (premium currency) and soft (premium currency), and the price increase of soft currency cannot exceed the forward exchange rate between the currency and the corresponding currency, otherwise I can accept the coin quotation. Only in this way can we achieve the goal of not losing money on commodity prices and exchange rates.