What is the cross exchange rate?

Generality used in the determination of the exchange rate with American dollars. This application which is valid all over the world, the exchange rate, expressed as the translation system has been adopted. Although they are observed to be confusion as to the meaning, triangulation, describes its relationship with the relationship between two currencies of a third currency. Each is based on the exchange rate between the national currencies of the two countries in which a currency is calculated. Usually the USD is used as the underlying currency.

Other than the American dollar rate dollar rate to be calculated between the two countries in the currency of the process is called triangulation. An important variable in affecting the world economy, what is the cross exchange rate? Mentioned the importance of the values of the currencies and the exchange rate, countries that have currencies in the world this is their share in the volume of production and trade shows. In comparison most often located between the exchange rate, the dollar/euro at parity relations between the US and the European Union come to the fore. This is the value of the exchange rate to be monitored, is of great importance in terms of developments in the world economy. In a strong structure on the world, the US, the impact on the entire world economy, exchange rate explains more clearly the importance of.