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To compile statistics using the GFS framework, we need to express the values of all flows and stock positions in units of a single currency. For most countries, its national currency is the most obvious choice. So any flows or stocks expressed in foreign currencies must be converted to domestic currency. For example, grants from governments of other countries or international organizations, or financial assets and liabilities denominated in a foreign currency, need to be converted into the domestic currency. To convert values from a foreign currency to a domestic currency, we need to know the price of one currency in terms of the other. The price is called the exchange rate, usually stated in terms of how many units of one currency are needed for each unit of another currency. The most appropriate exchange rate we use for the conversion of flows and stock positions is the market rate at the time of the flow or on the date of the balance sheet. In principle, the midpoint between the buy