A currency pair shows the two currencies in an exchange-rate quotation. In USD/PHP, USD is the base currency and PHP is the quote currency. An illustrative rate of 62.50 means one USD is priced at 62.50 PHP under that example quote.
Base and quote currency
The first code is the base. The second is the quote. The IMF defines an exchange rate as one currency’s price in another in its official glossary.
| Pair | Base | The rate states |
|---|---|---|
| USD/PHP | US dollar | PHP for one USD |
| AUD/PHP | Australian dollar | PHP for one AUD |
| EUR/PHP | Euro | PHP for one EUR |
| JPY/PHP | Japanese yen | PHP for one JPY |
How to reverse a pair
Inverse rate = 1 ÷ direct rate
Using the illustrative USD/PHP rate of 62.50, PHP/USD is 0.016. Rounding the inverse too early can create a material error on a large payment.
Pair direction is a common spreadsheet error
- Multiplying by one direction and labelling the other.
- Comparing rates captured at different times.
- Ignoring whether a rate is a benchmark or customer quote.
Before accepting a Quotable Payments quote, confirm the pair direction and whether the business will multiply or divide. Then compare it with a timestamped foreign exchange rate in the same direction.
