FX Rate Quotation Method System Parameter

In System Management Center's System Parameters workspace, when you manage system parameters you can use Sys Item 40, FX rates quotation method. 

The FX converter uses this system parameter to determine the FX rate quotation method, which is the method by which FX rates are stored in PACE. The value 0 (zero) represents direct quotation and the value 1 represents indirect quotation. Direct quotations mean FX rates are stored in To foreign currency units per one From currency unit, while indirect quotations are stored in From currency units per one To currency unit.

Sample Direct Quotation

If you set sys_item 40 to 0, the system uses a direct quotation method. This means that the FX rates are assumed to be quoted in one unit of the From currency. In the previous table, the From currency is GBP. For conversion to USD, the FX Converter resolves the rate as FROM = GBP and TO = USD. The rate then is multiplied by the value. Therefore, a Market Value of 100,000 GBP is converted to 18,8075.98 USD as follows:

^{[100000 BGP * (1.8808 USD / 1 GBP) = 18,8080.00 USD]}

Sample Indirect Quotation

If you set sys_item 40 to 1, the system uses an indirect quotation method. This means that the FX rates are assumed to be quoted in one unit of the To currency. In the previous table, the To currency is USD. For conversion to USD, the engine still resolves the rate as FROM = GBP and TO = USD. The rate is multiplied by the reciprocal of the value, as follows:

^{[100000 BGP * (1 USD / 0.5317 GBP) = 18,8075.98 USD]}