Exchange rate

Definition

An exchange rate is the value of one currency for the purpose of conversion to another. It determines how much of one currency you can get with a certain amount of another currency.

Related terms

Currency Appreciation: An increase in the value of one currency in terms of another.

Inflation: The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Bretton Woods Institutions: International organizations (IMF and World Bank) established to help manage economic cooperation globally and stabilize currencies after World War II