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04-Aug-2019 23:46

The home country is where a company is headquartered.

The firm is likely to be paid or have profits in a different currency and will want to exchange it for its home currency.

both are "other"), market convention is to use the fixed currency which gives an exchange rate greater than 1.000.This is the exchange rate (expressed as dollars per euro) times the relative price of the two currencies in terms of their ability to purchase units of the market basket (euros per goods unit divided by dollars per goods unit).If all goods were freely tradable, and foreign and domestic residents purchased identical baskets of goods, purchasing power parity (PPP) would hold for the exchange rate and GDP deflators (price levels) of the two countries, and the real exchange rate would always equal 1.This reduces rounding issues and the need to use excessive numbers of decimal places.

There are some exceptions to this rule: for example, the Japanese often quote their currency as the base to other currencies.This report provides exchange rate information under Section 613 of Public Law 87-195 dated September 4, 1961 ( (b)) which gives the Secretary of the Treasury sole authority to establish the exchange rates for all foreign currencies or credits reported by all agencies of the government. The rates provided in this report are not meant to be used by the general public for conducting foreign currency conversion transactions.



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