Setting up the exchange rate file
FIA can use externally supplied exchange rates if the users wishes to convert supplied base currency returns to local currency returns. Exchange rates are not required otherwise.
If supplied, the name of the exchange rate file is supplied in the FXFile field in the configuration file.
Exchange rates are always supplied with respect to some base currency. This is typically the US dollar, but can be any currency. The actual base currency used does not matter, as exchange rates are always calculated as the ratio of the exchange rate of the two currencies of interest against their base rate.
The base currency will always have an exchange rate of 1.00000.
For instance, at the time of writing the USD/GBP rate is 0.62899, and the USD/AUD rate is 0.96279. Therefore, the GBP/AUD rate is 0.96279 / 0.62899 = 1.53069 - without having to know the base currency in which the starting rates were quoted.
All rows in the exchange rate file must conform to the following format:
|Column 1||Date||Date||31/12/2000||Yes. Entries in the Date column must conform to the relevant date format string in the project’s configuration file (see section Setting up the configuration file).|
|Column 2||Currency||String||AUD||Yes. In addition, each entry in this field must use the standard three-letter ISO 4217 format for currency codes, available at http://en.wikipedia.org/wiki/ISO_4217.|
|Column 3||Exchange rate||Real||1.4433||Yes|