Forex Expectations

There are still exceptions to this general rule

In particular, in all OTC markets around the world, the pound sterling continues to be quoted as the base currency against the dollar and other currencies. Thus, market makers and brokers everywhere quote the pound sterling at x dollars and cents per pound, or y DEM per pound, and so forth. The United Kingdom did not adopt a decimal currency system until 1971, and it was much easier mathematically to quote and trade in terms of variable amounts of foreign currency per pound than the other way around.

Certain currencies historically linked to the British pound—the Irish, Australian, and New Zealand currencies—are quoted in the OTC market in the same way as the pound: variable amounts of dollars and cents per unit.

The SDR and the ECU, composite currency units of the IMF and the European Monetary Union, also are quoted in dollars and cents per SDR or ECU. Similarly, it is expected that the euro will be quoted in dollars and cents per euro, at least among dealers. But all other currencies traded in the OTC market are quoted in variable amounts of foreign currency per one dollar.