> Scenario 3: Base currency is in Euro zone; foreign currency is not in Euro zone.

Datastream 7i uses a triangular conversion method to convert foreign currency amounts to a base currency in the Euro zone, which means that foreign currency amounts must first be converted to Euro currency before being converted to a currency in the Euro zone.

The variable Euro currency exchange rate is defined on the Exchange rates tab of the Currencies form (SNCURR). The fixed Euro zone exchange rate is defined in the Euro column on the List view tab of SNCURR. Datastream 7i uses these exchange rates to convert foreign currency to base currency using the following equation:

Euro amount = foreign currency amount/variable exchange rate;

base currency amount = Euro amount x fixed exchange rate

 

Example