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Foreign Exchange Rates and Quotations

A foreign exchange rate is the price of one currency expressed in terms of another currency. A foreign exchange quotation (or quote) is a state of willingness to buy or sell at an announced rate.

In the retail market (including newspapers and foreign exchange booths at airports), quotes are most often given as the home currency price of the foreign currency and are also given for many currency pairs. However, this practice is not uniform worldwide.

The foreign exchange quotes are as either direct or indirect. A direct quote is a home currency price of a unit of foreign currency, and an indirect quote is a foreign currency price of a unit of home currency.

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