1993 exchange rate of RMB against Hong Kong dollar: 1:0.89. "Exchange rate", also known as "foreign exchange market" or "exchange rate", is the ratio of one currency to another, representing the price of another currency. Because different countries (regions) in the world have different currency names,

Currency values are different, so a currency should set an exchange rate for the currencies of other countries (or regions), that is, the exchange rate. In the short term, the exchange rate of a country (or region) is determined by the demand and supply of foreign currency in that country (or region).

Extended data

Exchange rotation

direct quotation

The direct quotation method, also known as the price payable method, is to calculate how many units should be paid in the local currency based on a certain unit of foreign currency (1, 100, 10000,10000). It is equivalent to calculating how much local currency should be paid for purchasing a unit of foreign currency, so it is called the payable price method. In the international foreign exchange market, most countries in the world, including China, currently adopt direct quotation.

For example, the exchange rate of Japanese yen against US dollar is 1 19.05, that is, 1 US dollar is 1 19.05 yen. Under the direct quotation, if a unit's foreign currency conversion cost currency is more than the previous period, it means that the foreign currency value rises or the local currency value falls, which is called the foreign exchange rate rise; On the other hand, if you want to use less local currency than before, you can change it into the same amount of foreign currency.

This shows that the decline of foreign currency value or the rise of local currency value is called the decline of foreign exchange rate, that is, the value of foreign currency is directly proportional to the rise and fall of exchange rate. Direct quotation is similar to the common sense of buying and selling goods. For example, in direct quotation, the US dollar is used as a commodity to buy and sell foreign exchange, and the US dollar is 1 unit, and the unit is unchanged, while the RMB as the currency side is changing.

The same is true for the sales of general commodities. 500 yuan bought a dress, 550 yuan sold it and earned 50 yuan. The commodity has not changed, but the currency has changed.

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