On June 1 994 65438+1October1,the official exchange rate of RMB was merged with the exchange rate in the foreign exchange swap market, and banks settled and sold foreign exchange, establishing a unified inter-bank foreign exchange market and implementing a single exchange rate based on market supply and demand, which was called "managed floating exchange rate system".
The direct quotation method, also known as the price payable method, refers to how many units of domestic currency should be paid based on a certain unit of foreign currency (1 or 100, 1000 units). That is to say, in direct quotation, the exchange rate is the price of foreign currency expressed in domestic currency. The rise of foreign exchange rate means the rise of foreign currency value, which means that the local currency of convertible unit foreign currency increases and the local currency value decreases; The decline of foreign exchange rate means the decline of foreign currency value, which means that the convertible local currency of foreign unit currency decreases and the local currency increases. At present, most countries in the world adopt direct quotation, and China also adopts direct quotation.