Multinational Operations/Currencies

CFA Level II FRA
#1

Under the Schweser topic review of multinational operations, I came across the following quotes :-

USD/LC 0.4545

USD/LC 0.4000

USD/LC 0.4292

USD/LC 0.5000

Do these quotes imply that 1 USD = 0.4545 LC, and so on, or do they imply that 1 LC = 0.4545 USD?

To me, it feels like it should be the former, but the solution was MULTIPLYING the LC amount with 0.4545 to arrive at the USD amount, which indicates that it is the latter.

#2

CFA Institute’s convention for quoting currency exchange rates is the opposite of the rest of the world.

USD/LC 0.4545 means:

USD 0.4545 = LC 1.0.

#3

Okay, thanks for the response. This is somewhat counterintuitive

#4

But now you know.