- Exchange rate
- The price of one country's currency expressed in another country's currency. The New York Times Financial Glossary
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FINANCE the price at which one currency can be bought with another:• If the yen-dollar exchange rate remains at its current level, U.S. exporters could lose $5 billion to $10 billion in business annually.
ˈcross rate FINANCEthe rate of exchange between two currencies, calculated by comparing them to another currency:• In the foreign exchange market all currencies are quoted against the dollar, so market operators can quickly work out cross rates between various currencies.
equiˌlibrium exˈchange rate FINANCEan exchange rate that would take account of differences in inflation interest rate S, and other aspects of the economic situation:• When the head of currency research at JP Morgan calculated an equilibrium exchange rate of DM2.95 to the pound, it was based on an assumption that the UK would join the Euro in 2002.
ˌfixed exˈchange rate FINANCEan exchange rate that is not allowed to change in relation to others, for example under the Bretton Woods Agreement:• Given a fixed exchange rate and a UK inflation rate higher than that in the rest of the world, UK exports will become less competitive in world markets while imports will become more attractive to UK buyers.
ˌfloating exˈchange rate also ˌfree exˈchange rate FINANCEan exchange rate when the value of a currency is allowed to change in relation to othersˌforward exˈchange rate FINANCEa fixed price given for buying a currency today to be delivered in the future, for example in three months' time, used in international trade to avoid the extra costs that could occur if the exchange rate changesinterˈvention rate FINANCEthe rate of exchange, either high or low, at which a country's national bank must buy or sell its own currency in order to return it to the same value that it had before:• The Bank of France pushed up its intervention rate by 0.75% to 9.5%.
ofˌficial exˈchange rate FINANCEan exchange rate set by the government:• The official exchange rate is two pesos to the dollar; in Havana, the black market rate for pesos is 60 to the dollar.
the price of a currency to be delivered now, rather than in the future:• the percentage difference between the forward exchange rate and the spot exchange rate
ˌtrade-ˌweighted exˈchange rate FINANCEan exchange rate calculated in relation to different countries' currencies to take account of the amount of trade that is done with each countryˌunofficial exˈchange rate FINANCEan exchange rate that is not set by a government but is one that people really use, for example on the black market:• His official monthly salary of 500 rubles is now worth only about $18.60 at the widely used unofficial exchange rate.
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exchange rate UK US noun [C] (also rate of exchange)► ECONOMICS, FINANCE the rate at which the currency of one country can be changed for the currency of another country: a fall/rise in the exchange rate »The fall in the exchange rate triggered a rise in inflation.
a competitive/favourable/good exchange rate »Maintaining low inflation is essential to secure a stable and competitive exchange rate.
»a high/low exchange rate
»exchange rate fluctuations/movements
→ See also EQUILIBRIUM EXCHANGE RATE(Cf. ↑equilibrium exchange rate), FIXED EXCHANGE RATE(Cf. ↑fixed exchange rate), FLOATING EXCHANGE RATE(Cf. ↑floating exchange rate), FORWARD EXCHANGE RATE(Cf. ↑forward exchange rate), OFFICIAL EXCHANGE RATE(Cf. ↑official exchange rate), REAL EXCHANGE RATE(Cf. ↑real exchange rate), SPOT EXCHANGE RATE(Cf. ↑spot exchange rate), TRADE-WEIGHTED EXCHANGE RATE(Cf. ↑trade-weighted exchange rate), UNOFFICIAL EXCHANGE RATE(Cf. ↑unofficial exchange rate)
Financial and business terms. 2012.
