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Definition: European Currency Quotation
A quotation which is not direct in the foreign exchange markets and where the monetary value of a currency outside of the United States is represented in the form of a unitary measure of the U.S. dollar. This type of quotation has the ability to show the people how much foreign currency would be required to buy one United States dollar.
For example, a European currency quote can be stated as C$ 1.24 per US $1. Let us see what it means. This shows that 1.24 Canadian dollars would be required to buy US $ 1, that is, only a single unit of U.S. currency. If someone wishes or desires to buy US $ 5,000 he would have to shell out C$ 6,200 from his/her pocket.
In some parts of Europe and America when referring to the currency market, European Currency Quotation may also mean, an exchange rate given in U.S. dollars per unit of the outside country’s currency. Putting it simply, the practice of stating an exchange rate in European terms implies putting up the number of dollars required to have one unit of that foreign currency. European terms may often seem to be different from the direct terms, which generally represents the amount of the foreign currency required to buy one dollar.