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Base currency definition

Accounting Tools

What is a Base Currency? A base currency is the first currency listed in a foreign exchange quote. For example, if a quote is stated as GBP/USD, the quote states the number of U.S. In this quote example, the pound is the base currency. Thus, if a U.S. Thus, if a U.S.

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Functional currency definition

Accounting Tools

What is a Functional Currency? A functional currency is the currency used in the primary economic environment where an entity operates. The currency of the country whose competition and regulations primarily influence sales prices. The functional currency is the reporting entity’s if so, and the local currency if not.

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We’re retiring the classic version of Xero invoicing

Xero

We’ll also share support articles in Xero Central , as well as how-to videos and other resources to help you. We recognise that this may feel like a big change and take some time to get used to, especially when you have to complete some tasks in a different way than you’re used to.

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Quote currency definition

Accounting Tools

Related Courses Corporate Cash Management Foreign Currency Accounting What is a Quote Currency? When comparing the price of one currency to another, the quote currency is the currency that fluctuates in comparison to the base currency. Dollar, the Euro is the quote currency and the U.S.

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Foreign exchange definition

Accounting Tools

Foreign exchange is the swapping of one currency for another. It is needed to settle transactions between people or entities located in countries that use different currencies. The conversion rate at which these transactions occur is constantly changing for most currencies, based on the supply of each currency and the demand for it.

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Currency pair definition

Accounting Tools

Related Courses Corporate Cash Management Treasurer's Guidebook What is a Currency Pair? A currency pair is the stated value of a currency in comparison to another currency. This concept is used in the foreign exchange market to buy and sell currencies. Example of a Currency Pair For example, in the 1 GBP / 1.2

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Hard currency definition

Accounting Tools

Related Courses Corporate Cash Management Foreign Currency Accounting What is Hard Currency? Hard currency is any currency that is widely accepted for settling payment transactions. Examples of Hard Currency A hard currency generally originates in a country that has a robust economy and stable political environment.