1. Cash Flow Engine Reference Guide
  2. Cash Flow Calculations
  3. Terminology Used in This Chapter
  4. Local Currency versus Reporting Currency

7.7.2 Local Currency versus Reporting Currency

When processing Multicurrency Data, we generally refer to the currency as one of the following:

  • Local Currency

    This can be an Active Currency. It is the currency in which the record is denominated. For example, USD (US Dollars) or JPY (Japanese Yen).

  • Reporting Currency

    This is the target for currency translation. That is, the Cash Flow Engine translates Cash Flows or values on the instrument record by using the exchange rate from the Local Currency to the Reporting Currency.