nominal exchange rate(redirected from Nominal Exchange Rates)
Nominal exchange rate
The actual foreign exchange quotation in contrast to the real exchange rate, which has been adjusted for changes in purchasing power.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
nominal exchange ratethe EXCHANGE RATE of a currency expressed in current price terms, that is, making no allowance for the effects of INFLATION. Contrast REAL EXCHANGE RATE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005