Basevaluutta

Basevaluutta, or base currency, is the currency used as the reference unit in international finance and currency markets. It serves as the primary unit against which the value of other currencies is measured and quoted. In a currency pair, the basevaluutta is the first currency shown; the accompanying price indicates how much of the quote currency is needed to buy one unit of the basevaluutta. For example, in the EUR/USD pair, EUR is the basevaluutta and USD is the quote currency; a quote of 1.10 means one euro costs 1.10 U.S. dollars. In USD/JPY, USD is the basevaluutta and the price shows how many Japanese yen are required to buy one U.S. dollar.

The basevaluutta also appears in accounting, reporting, and valuation. Companies may designate a basecurrency for their financial statements, with other currencies translated into that base for consolidation and comparison. In international trade and finance, choosing a basevaluutta can affect pricing, invoicing, and hedging strategies, since movements in exchange rates relative to the base can alter costs and revenues.

The choice of basevaluutta is influenced by factors such as the size of the economy, trade relationships, and market convention. In practice, the most liquid and widely traded currencies often serve as basevaluuttas in many pairs, most notably the U.S. dollar, though this is not universal.