If you are using FXLoader to load rates into an ERP, this can be configured to use decimal places but automatically over-ride to use significant figures for individual rates whenever that is more appropriate. When checking rates interactively, our Currency Converter shows rates to 5 decimals and our Historical Currency Converter shows rates to 6 decimals. If you use rates with a large range of values you may wish to use a mixture of decimal places and significant figures. Indeed, for very low-value currencies rounding by decimal places can result in a rate of zero (see final example in the table below).Īctually, the most accurate approach is not to use rounding at all, but many ERPs and Excel apply rounding anyway. This depends on the size of the number in question:įor rates greater than 1 - Decimal Places are more accurate.įor rates between 0.1 and 1, it makes no difference which rounding method is used.įor rates, less than 0.1 - Significant Figures are more accurate. Which is most accurate – decimal places or significant figures? Rounding by significant figures is similar to rounding by decimal places, but the difference is that any leading zeros do not count. The difference between decimal places and significant figures triangulation to get cross-rates or calculation of inverses.Īnd if rounding is to be applied, is it better to use decimal places or significant figures? The decision has to be made whether to round those rates and at what point the rounding should be applied:Īt the point of pulling the rates from the source.Īfter any configuration has taken place, e.g. OANDA FX Data Services is a well-trusted provider of rates for all tradable currencies to at least 15 decimal places. Choosing how those rates are rounded significantly affects the accuracy of foreign currency transactions when your accounting system applies them.įinancial Controllers who use multi-currency need accurate and authentic foreign currency rates in their accounting system. Any organization that deals with multiple currencies need FX rates that meet their accounting requirements.
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