What does exchange rate mean?

Definitions for exchange rate

Here are all the possible meanings and translations of the word exchange rate.

Princeton's WordNet

  1. rate of exchange, exchange rate(noun)

    the charge for exchanging currency of one country for currency of another


  1. exchange rate(Noun)

    The amount of one currency that a person or institution defines as equivalent to another when either buying or selling it at any particular moment

  2. exchange rate(Noun)

    The rate at which one currency can be exchanged for another, usually expressed as the value of the one in terms of the other.


  1. Exchange rate

    In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 91 Japanese yen to the United States dollar means that ¥91 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥91. Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency. The quoted rates will incorporate an allowance for a dealer's margin in trading, or else the margin may be recovered in the form of a "commission" or in some other way. Different rates may also be quoted for cash, a documentary form or electronically. The higher rate on documentary transactions is due to the additional time and cost of clearing the document, while the cash is available for resale immediately. Some dealers on the other hand prefer documentary transactions because of the security concerns with cash.


  1. Chaldean Numerology

    The numerical value of exchange rate in Chaldean Numerology is: 8

  2. Pythagorean Numerology

    The numerical value of exchange rate in Pythagorean Numerology is: 3

Sample Sentences & Example Usage

  1. Wednesday Weale:

    The exchange rate rose by 2.5 percent in February and I am starting to wonder whether a rising exchange rate might be the next of these shocks.

  2. Kalpana Kochhar:

    So far, the BOJ has responded appropriately (to market volatility). When there is market volatility ... the best response is to let the exchange rate move, exchange rate is not a target and has not been a target for the BOJ.

  3. Alex Wong:

    You're seeing a bit of a rebound now, but I think we're likely to see new lows eventually, perhaps when earnings come out later in the year, basically only domestic investors will be interested at this point. For us it's very clear, we would stay away because we don't want the interest rate or exchange rate risk.

  4. William Jackson:

    The key question is now whether the central bank will start intervening...Unlike the Swiss they have managed to have that ceiling without actually having to act to maintain it, the concern will be if the exchange rate does come under large pressure and if they accumulate large reserves they would be under pressure to remove the exchange rate ceiling, much like the Swiss had to do earlier in the year.

  5. Morgan Stanley:

    While policymakers are still trying to maintain the trade-weighted (yuan) exchange rate in a stable range, we now anticipate that they will transition towards targeting a depreciation in the NEER (nominal effective exchange rate) about two quarters earlier than initially expected, this move will help policymakers to still cut interest rates to manage deflationary pressures, but will imply further depreciation of the yuan (against the dollar).

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Translations for exchange rate

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"exchange rate." Definitions.net. STANDS4 LLC, 2017. Web. 24 Sep. 2017. <http://www.definitions.net/definition/exchange rate>.

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