What Is a Proportional Rate?

Exchange rate is also called foreign exchange rate, foreign exchange rate or foreign exchange market, which refers to the exchange rate between two currencies, and can also be regarded as the value of a country's currency to another currency. Specifically, it refers to the ratio or parity of the currency of one country to the currency of another country, or the price of the currency of another country expressed in the currency of one country.

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(1) Press

(1) Direct price method

The direct price method, also known as the payable price method, uses the foreign currency of a certain unit (1, 100, 1000, 10000) as the standard to calculate how many units of the domestic currency should be paid. It is equivalent to calculating how much domestic currency should be paid to purchase a certain unit of foreign currency, so it is called payable price method. Most countries in the world, including China, currently use direct pricing. In international

Determine the difference between two different currencies

(1)

· Direct price method:

Exchange rate appreciation / depreciation rate = (old exchange rate / new exchange rate-1) * 100

· Indirect pricing method:

Exchange rate appreciation / depreciation rate = (new exchange rate / old exchange rate-1) * 100

The result is a positive value indicating the appreciation of the local currency, and a negative value indicating the devaluation of the local currency