Direct quotation refers to the price of foreign currency expressed in local currency, that is, the pricing method of converting a certain unit of foreign currency 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. An increase in the purchase price of local currency means an increase in the foreign exchange rate, indicating that foreign currency appreciates and local currency depreciates; On the contrary, the reduction in the number of local currency bids means the decline in the foreign exchange rate, indicating that foreign currency depreciates and local currency appreciates.