GMS 724 Final: GMS 724 - Chapter 8 - Major Foreign-Exchange Markets

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: HOWARD LIN

Document Summary

In part, because of a lack of trust in the banking system. In this example, the dealer quotes the foreign currency as the member of. It is also known as american terms: the other convention for quoting foreign exchange is known as the indirect quote, which is the number of units of the foreign currency for one unit of the domestic currency. If you know the dollar/yen quote, you can divide that rate into 1 to get the yen/dollar quote. In other words, the exchange rate in american terms is the reciprocal or inverse of the exchange rate in european terms: for example, using the rates for the japanese yen, 1/. 012539 = 80. 91. In addition to the spot rates for each currency, there are also forward rates for each currency such as the british pound, canadian dollar, japanese yen, and.