In the direct quotation (that is, the unit foreign currency is expressed in multiple functional currencies), the forward premium is increased at the spot exchange rate and decreased by the indirect pricing method (that is, the unit foreign currency is expressed in multiple functional currencies). In other words, both premium and discount refer to non-bookkeeping currency.
Extended data:
Under the direct quotation, if a unit's foreign currency conversion cost currency is more than the previous period, it means that the foreign currency value rises or the local currency value falls, which is called the foreign exchange rate rise; On the other hand, if you want to use less local currency than before, you can convert it into the same amount of foreign currency, that is to say, the decline of foreign currency value or the increase of local currency value is called the decline of foreign exchange rate, that is, the value of foreign currency is directly proportional to the rise and fall of exchange rate.
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