exchange rate

noun

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

He was accused of making millions of dollars on a central bank loan obtained at a preferential exchange rate and then moving it through his money exchange business before buying farm equipment in the U.S. The case was dropped. — Washington Post, "Paraguay president withdraws resignation and Senate bid," 26 June 2018 He was accused of making millions of dollars on a central bank loan obtained at a preferential exchange rate and then moving it through his money exchange business before buying farm equipment in the U.S. The case was dropped. — Pedro Servin, The Seattle Times, "Paraguay president withdraws resignation and Senate bid," 26 June 2018 Cambridge is a cross-border payments company, and that involves forward exchange rates and delivering the money. — Polina Marinova, Fortune, "Term Sheet -- Thursday, June 14," 14 June 2018 Like a number of other stablecoin projects, Basis plans to use an on-chain consensus mechanism to establish an official exchange rate between Basis and dollars at any given point in time. — Timothy B. Lee, Ars Technica, "Basis—the “stable” cryptocurrency with $133 million invested—explained," 25 Apr. 2018 The keyboard monument was financed mostly with money and materials provided by a local tech company, and installed by volunteers who were paid 1,000 rubles a day, or $15.93 at today’s exchange rate, Vyatkin said. — Sarah Lyall, New York Times, "Move Over, Lenin: Make Room for the Computer Keyboard," 3 July 2018 Any notion of a quick currency unification and new exchange rate is for me technically and socially impossible now. — Mimi Whitefield, miamiherald, "Cuba desperately needs to reform currency system, but timing couldn’t be worse | Miami Herald," 4 Apr. 2018 Draghi made no direct comments about ECB monetary policy deliberations or euro exchange rate. — Bloomberg.com, "Bloomberg Markets: Draghi Mum on Monetary Policy," 25 Aug. 2017 At the official exchange rate, which few people have access to, that salary is equivalent to $13. — Author: Jim Wyss, Anchorage Daily News, "Venezuela’s currency is worth so little that artisans make purses out of it," 24 June 2018

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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17 Oct 2018

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The first known use of exchange rate was in 1855

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More Definitions for exchange rate

exchange rate

noun

Financial Definition of exchange rate

What It Is

An exchange rate between two countries' currencies indicates the value of one currency relative to the other.

How It Works

On June 16, 2010, the exchange rate between the dollar and the euro was 1.23 $/€. This means that to obtain one euro, you would need 1.23 dollars. Conversely, if you were about to take a vacation to Europe, you could take $1,000 to the bank and receive €813.01.

Exchange rates can be fixed or floating. If a country fixes its currency to that of another country, the exchange rate between those two currencies will not change. If a country has a floating exchange rate, the rate between its currency and any other currency will adjust to market conditions.

Why It Matters

The exchange rate between two currencies plays a major role in international trade and investment. For instance, if the dollar appreciates, or gains value, relative to the euro, Americans traveling in Europe will have greater purchasing power, but it will be more difficult for the U.S. businesses to export goods.

Changes in the exchange rate are subject to a wide range of factors, such as interest rates, price levels and expected future market conditions.

Source: Investing Answers

exchange rate

noun