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Nominal Exchange Rate

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Nominal exchange rate
The actual foreign exchange quotation in contrast to the real exchange rate, which has been adjusted for changes in purchasing power.

Nominal Exchange Rate
The official quote of an exchange rate. For example, when one changes dollars for pounds, the bank lists an exchange rate of, say, two dollars for one pound. This is the nominal exchange rate. While this indicates the number of pounds one receives for a dollar (or vice versa), it does not show the purchasing power of the pound versus that of the dollar. See also: Real Exchange Rate.


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Since the middle of 2008, the yuan's nominal exchange rate appreciation against the US dollar "has stopped although the nominal effective exchange rate has appreciated 5.
Since the middle of 2008, the yuan's nominal exchange rate appreciation against the US dollar "has stopped although the nominal effective exchange rate has appreciated 5.
While countries can control a nominal exchange rate fairly easily, managing a real exchange rate is a whole other--and difficult--ballgame.
 
 
 
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