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9 votes
When you have the base currency, what is the operation to do the conversion?

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User Tutak
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1 Answer

4 votes

To convert from the base currency, we multiply by the exchange rate. Just like multiplying to apply a commodity price. Indeed, our base currency can be viewed as the commodity in the quote. Say we need to convert €8m into dollars, by applying the exchange rate EUR/USD 1.25.

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User Mbask
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