Effective exchange rate

 

 

 

Effective exchange rate

 

Glossary of business

 

Definition of effective exchange rate

 

The effective exchange rate is also often called the trade-weighted exchange rate. It is based on a basket of currencies, and so is in effect an average exchange rate for a number of currencies. The currencies in the basket are weighted according to how much trade we do with other countries, in other words to their importance to us in terms of trade.

 

Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

link: http://business-tes.wikispaces.com/

Author : not indicated on the source document of the above text

 

Terminology about business

 

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Definition and meaning of effective exchange rate

 

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Meaning of effective exchange rate

 

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What does effective exchange rate mean ?

 

 

 

 

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