Foreign exchange rate pricing methods include: 1. Direct pricing method, also known as the price payable method.
Calculate how many units of domestic currency ARE to BE PAID in terms of a certain unit of foreign currency (1, 100, 1000, 10000).
It IS equivalent TO CALCULATING how many local currencies TO DEAL with to buy a certain unit of foreign currency, so it is called to deal with the price method.
2. Indirect pricing method is also known as receivable pricing method.
It is based on a certain unit (such as 1 unit) of the domestic currency as the standard, to calculate the receivable of a number of units of foreign currency.
In the international, the euro, British pound, Australian dollar and so on are indirect pricing method.
3. The marking method, also known as the New York marking method, refers to the marking method that uses the indirect marking method for other foreign currencies in the New York international financial market in addition to the direct marking method for sterling.
The Dollar Marking Act was enacted and implemented by the United States on September 1, 1978, and (in 2013) is the prevailing marking act in the international financial market.
