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An American currency quotation is a quotation in the foreign exchange markets whereby the value of the American dollar is stated as a per-unit measure of a foreign currency. This type of quotation shows how much U.S. currency it takes to purchase one unit of foreign currency.

There are many ways to measure an exchange rate. The most common way is to measure a bilateral exchange rate. A bilateral exchange rate refers to the value of one currency relative to another. Bilateral exchange rates are typically quoted against the US dollar (USD), as it is the most traded currency globally.

If you are going from the ?1? to the other currency then multiply. If you are going to the ?1? from the other currency then divide.

If the USD/CAD currency pair is 1.33, that means it costs 1.33 Canadian dollars to get 1 U.S. dollar. In USD/CAD, the first currency listed (USD) always stands for one unit of that currency; the exchange rate shows how much of the second currency (CAD) is needed to purchase that one unit of the first (USD).

There are four main types of exchange rate regimes: freely floating, fixed, pegged (also known as adjustable peg, crawling peg, basket peg, or target zone or bands ), and managed float.

The Exchange Rate For our purposes, we'll assume we are in the United States and that 'foreign currency' refers to anything other than the U.S. dollar. Direct quote: the value of the foreign currency in US dollars. Indirect quote: the value of the US dollar expressed in foreign currency.

In the currency markets, forward spreads, or points, are presented as two-way quotes; that is, they have a bid price and an offer price. In a discount spread, the bid price will be higher than the offer price, while in a premium spread, the bid price will be lower than the offer price.

An exchange rate is commonly quoted using an acronym for the national currency it represents. For example, the acronym USD represents the U.S. dollar, while EUR represents the euro. To quote the currency pair for the dollar and the euro, it would be EUR/USD.

U.S. Dollar (USD) European Euro (EUR) Japanese Yen (JPY). British Pound (GBP) Swiss Franc (CHF) Canadian Dollar (CAD) Australian/New Zealand Dollar (AUD/NZD) South African Rand (ZAR)

A currency board combines three elements: an exchange rate that is fixed to an "anchor currency," automatic convertibility (that is, the right to exchange domestic currency at this fixed rate whenever desired), and a long-term commitment to the system, which is often set out directly in the central bank law.