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.

nominal exchange rate

the EXCHANGE RATE of a currency expressed in current price terms, that is, making no allowance for the effects of INFLATION. Contrast REAL EXCHANGE RATE.
References in periodicals archive ?
The exhibit below shows that both countries' nominal exchange rates with trading partners have remained broadly stable since 2010, reflecting their respective pegs.
where RER represents the real exchange rate; NER represents the nominal exchange rate and CPI represents the consumer prices index.
Chart 3 shows the movement of the nominal exchange rate of the yen vis-a-vis the US dollar and the Japanese export price index (all industries).
Monetary policy in Singapore is unique in that it uses the nominal exchange rate to achieve low inflation and sustained growth.
iii) if we consider the nominal exchange rate, the BRL appreciated in 6 of the 11 years in which the BCB met the inflation target (55% of the success cases).
After 2001, nominal exchange rate of Pakistan is highly volatile, though, the other economic fundamentals remain the same.
The terms i, i, s and premt denote annualized quarterly domestic and foreign interest rates, Pak Rupee/$ nominal exchange rate and country specific FX risk premium respectively.
What this suggests is that for European countries, the relative stability of bilateral nominal exchange rates may have been important in allowing for a more fundamental-based evolution of real exchange rates, in contrast to the findings from a wider sample of countries where nominal exchange rate variation becomes a much more important element.
It seems that short-term nominal interest rates in countries with a nominal exchange rate anchor are less exposed to the liquidity shocks due to their high vulnerability to external ([current account.
But the prices of tradables themselves--including primary commodities and manufactured goods--would be pinned down to world levels by a fixed nominal exchange rate.
The nominal exchange rate is currently at historically high levels against nearly all of our trading partners.
Thus, monetary policy cannot be used to initiate changes in the real exchange rate designed to achieve some domestic goal if this involves changing the nominal exchange rate.