A direct quotation refers to the method of quoting the price of one unit of a foreign currency in terms of the domestic currency. In a direct quotation, the domestic currency is the quoted currency, while the foreign currency is the base currency. This is a convenient way for traders to show how much of a domestic currency is required to buy one unit of a foreign currency.
If the exchange rate of the United Arabic Emirates dirham and the US dollar is 0.27, a direct quotation in the UAE would express this rate as AED/USD 0.27. In this case, 1 AED is equal to 0.27 USD.
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