Base currency (基准货币 jī zhǔn huò bì) is the first currency that appears in a forex pair quotation. In the foreign exchange market, one currency will always be quoted in relation to another because investors are buying one while selling the other.
Part 1: Breakdown of Words
- “Base” (基准 jī zhǔn) derives from:
- “基” (jī) as in “basic” (基本 jī běn), “basis” (基础 jī chǔ), or in “base” (基地 jī dì).
- “准” (zhǔn) as in “preparation” (准备 zhǔn bèi), “standard” (标准 biāo zhǔn), or in “level” (水准 shuǐ zhǔn).
- “Currency” (货币 huò bì) derives from:
- “货” (huò) as in “goods” (货物 huò wù), “barter” (易货交易 yì huò jiāo yì), or “money” (通货 tōng huò).
- “币” (bì) as in “coin” (硬币 yìng bì), or “Bitcoin” (比特币 bǐ tè bì).
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