What is Base Currency Comments Off
Posted on
January 24, 2011 by
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In Foreign Exchange Rates,The first currency quoted in a currency pair on Forex. It is also typically considered the domestic currency or accounting currency. For accounting purposes, a firm may use the base currency to represent all profits and losses.
The base currency is assigned the value of 1 when calculating exchange rates. For example, if one is calculating the exchange rate of the U.S. dollar to the British pound and the pound is the base currency, it is expressed as GBPUSD and read as “dollars per one pound.” See also: quote currency.