1. In practice, our foreign exchange is converted into a unified price tag and then calculated. For example, in the case of direct quotation (excluding the handling fee factor such as spread), the RMB is 1: 7. 1 and the RMB is 1: 9 against the British pound, so it is obvious that we can directly divide 7. 1 by 9 in the case of benchmarking, thus getting about 0.79.

2. In the discipline of foreign exchange rate, there are two pricing methods of general foreign exchange rate, direct quotation method and indirect pricing method, which form the basis of the whole foreign exchange rate calculation.

3. Simply put, direct quotation is to treat a unit's foreign currency as a commodity, and then put the domestic currency behind as the price of the commodity, just like the price of a can of coke is two yuan a day. In the international foreign exchange market, most countries in the world, including China, adopt direct quotation. In direct quotation, if the unit price of foreign currency rises, that is, the price of foreign currency goods rises, it is called the rise of foreign exchange rate; On the contrary, the decline of foreign exchange unit price means the depreciation of foreign currency, which 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.

4. Indirect pricing method is just the opposite. Take coke as an example. In the direct quotation, we say that a can of coke is two yuan, but in the indirect pricing method, it becomes a question of how much coke can be bought for one yuan of silver. Therefore, under the indirect pricing method, the value of foreign currency is inversely proportional to the rise and fall of exchange rate.