exchange rate


Definition of exchange rate

: the ratio at which the principal unit of two currencies may be traded

Examples of exchange rate in a Sentence

Recent Examples on the Web That's $67,592,000, according to that day's official exchange rate. Fox News, "US sells ambassador's home in Israel for $67M, cementing embassy move to Jerusalem," 30 Dec. 2020 Yet because of exchange rate risks and dollar payments, Ghana’s ratio of external payments to revenue, for example, rose from 10% in 2014 to 40% in 2018. Ramya Vijaya, Quartz, "Covid-19 further exposes inequalities in the global financial system," 17 Dec. 2020 To be clear, a high black market exchange rate is terrible for import-dependent businesses that cannot access foreign exchange from official government channels given existing restrictions. Yomi Kazeem, Quartz Africa, "Nigeria’s defense of a spiraling naira and its multiple exchange rates isn’t working," 30 Nov. 2020 Fernandez’s administration is seeking to reduce the gap between Argentina’s official exchange rate — where $1 fetches about 75 pesos — and that on the black market, where a dollar costs about 130 pesos. Daniel Tenreiro, National Review, "The Capital Note: Semiconductors, Social Distancing & Scientific Stagnation," 16 Sep. 2020 When the price level is increasing rapidly and erratically on a day-by-day, hour-by-hour, or even minute-by-minute basis, exchange rate quotations are the only source of information on how fast inflation is actually proceeding. Andrew Stuttaford, National Review, "The Capital Letter: Week of November 2," 6 Nov. 2020 Now imagine adding a third exchange rate to the mix: that of the digital yuan. Mary Hui, Quartz, "One way China could make its digital yuan go global: pay people to use it," 3 Dec. 2020 Nigeria’s official exchange rate should not be determined by the parallel market where the naira value has weakened to a three-month low. Tope Alake,, "Nigerian Parallel Market Can’t Dictate Naira Rate, Emefiele Says," 24 Nov. 2020 China also has many tools for influencing the exchange rate beyond direct intervention. The Economist, "If China’s economy is so strong, why isn’t its currency stronger?," 31 Oct. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'exchange rate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of exchange rate

1855, in the meaning defined above

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Time Traveler for exchange rate

Time Traveler

The first known use of exchange rate was in 1855

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Statistics for exchange rate

Last Updated

18 Jan 2021

Cite this Entry

“Exchange rate.” Dictionary, Merriam-Webster, Accessed 19 Jan. 2021.

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More Definitions for exchange rate

exchange rate


English Language Learners Definition of exchange rate

: a number that is used to calculate the difference in value between money from one country and money from another country

More from Merriam-Webster on exchange rate

Britannica English: Translation of exchange rate for Arabic Speakers Encyclopedia article about exchange rate

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