Facebook CEO Mark Zuckerberg announced today that the company will begin using an updated foreign exchange rate algorithm for its foreign exchange trading in 2017.
“We are updating our foreign exchange market definition to be more accurate and to better align with what the U.S. Treasury uses,” Zuckerberg said in a statement.
“The U.K. Government’s current approach does not allow us to fully incorporate U. S. dollar values into our foreign currency market, so our foreign market calculation remains the same.
Facebook does not use the U,S.
dollar as a unit of account.”
The company has been forced to adopt a U.N. dollar-denominated exchange rate system since December 2017, following the U!$5.50 Brexit vote that saw Britain leave the European Union.
According to Zuckerberg, Facebook’s “current U. K. exchange rate is based on the value of the British pound against the dollar and we have never used the dollar value of any other currency in our foreign Exchange market.”
Facebook has been criticized by many investors, including US Federal Reserve Chair Janet Yellen, for the U.,S.
currency’s lack of flexibility.
The Facebook CEO’s statement came as the social media giant announced its first annual results for the year.
According on the company’s most recent SEC filings, Facebook has earned a net loss of $10.7 billion, or $1.8 billion a quarter.
Zuckerberg also revealed that the foreign exchange currency that it uses for its U.k. foreign exchange exchange market will be used in 2018.
The foreign exchange rates are based on a formula developed by the World Bank and the International Monetary Fund.
The calculation assumes that the exchange rate for the exchange of foreign currencies in the United States is fixed and constant, and does not reflect changes in the value and interest rates of currencies.
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