An exchange rate can be quoted in two ways:
The price of the foreign currency in terms of RMB
It is usually called the price quotation system, and this quotation defines the exchange rate as the number of units of domestic currency per unit of foreign currency. This amounts to defining the exchange rate as the price of foreign currency in terms of domestic currency. –eg. a direct quotation USD1= CNY 6.9472 in China
Copyright © Guobing Shen, Fudan University.
Slide 1-3
1: Exchange Rate and RMB‟s Exchange Rate
Exchange rates are important because they enable us to
translate different counties‟ prices into comparable terms. An exchange rate is the price of one currency in terms of another, is a relative price, and also an asset price. Foreign exchange rate is the price of some foreign currency expressed in terms of a home currency. Exchange rates are determined in the same way as other asset prices. We use the letter S to represent the home currency price of a unit of foreign exchange.
1: Exchange Rate and RMB Exchange Rate 2: Chinese RMB Issues in Dynamic and Global Perspective 3: Foreign Exchange Market and Market Intervention in China 4: Renminbi (RMB) Equilibrium Exchange Rate 5: Foreign Exchange Exposure and its Estimation
Monographic Study on Chinese Finance
Guobing Shen
Associate Professor of World Economy & International Finance
Institute of World Economy School of Economics Fudan University
Indirect quotation
The price of RMB in terms of the foreign currency
It is usually called the volume quotation system, and this quotation defines the exchange rate as the number of units of foreign currency per unit of domestic currency. With this definition the exchange rate is the price of domestic currency in terms of foreign cn the United Kingdom
Topic One
RMB‟s Exchange Rate, Foreign Exchange Market and Foreign Exchange Exposure


Discussing the academic papers related to Topic One
Topic One: Chapter Organization
Copyright © Guobing Shen, Fudan University. Slide 1-4
1: Exchange Rate and RMB Exchange Rate ——Exchange Rate Quotations
1.1: Exchange Rate Quotations
Direct quotation
Copyright © Guobing Shen, Fudan University.
Copyright © Guobing Shen, Fudan University. Slide 1-5
1: Exchange Rate and RMB Exchange Rate ——Exchange Rate Quotations
Currency
Argentine Peso Australian Dollar Brazilian Real British Pound Canadian Dollar Chinese Yuan Euro Hong Kong Dollar Indian Rupee Japanese Yen South Korean Won Mexican Peso Russian Ruble Swedish Krona Swiss Franc