Exchange Rate

Exchange Rate, in relation to foreign exchange of money, the price of a country's currency expressed in terms of one unit of another country's currency.

For information on:

• role of exchange rates in foreign exchange, see Foreign Exchange; United States (Economy): Exchange Rates and the Balance of Payments
• fluctuation in exchange rates, see Foreign Exchange: Price Fluctuation
• reduction of exchange rate, see Devaluation
• effect of the amount of money a nation spends abroad and income it receives on the rate of exchange, see Balance of Payments
• development of illicit currency exchanges when exchange rate does not reflect the true value of currency, see Black Market
• attempts to stabilize exchange rates, see European Union: Stabilizing Currencies: The European Monetary System; Gold Standard; International Monetary Fund
• historical fluctuation of specific exchange rates, see Pound; Yen
• Robert A. Mundell, a Nobel Prize-winning economist, and how his influential ideas on exchange rates eventually led to the adoption of a single common European currency, the euro, see Robert A. Mundell