As a cooperative professor of International Financial Management, I find many of my students initially confused by the indirect and direct quotes of foreign exchange. It does not help that most textbooks introduce this very practical concept in theoretical examples that contribute to the bewilderment, and others get the formulas incorrect. The idea itself is pretty straightforward. Let’s assume you’re a Chinese citizen looking to … Continue reading Direct and Indirect Quotes in Foreign Exchange (FX)
Depreciation occurs where the domestic currency purchases less foreign currency in an exchange.
Appreciation occurs where the domestic currency purchases more foreign currency in an exchange. Continue reading Appreciation, Depreciation, and Calculating the Rate of Change