Exchange rate

The price of one unit of a given currency, expressed in terms of a different currency

The exchange rate indicates how much of a given currency (e.g., the respective national currency) must be paid in exchange for one unit of a different currency. As a rule, the exchange rate is determined on the basis of supply and demand, although it can also be fixed. The mexican Peso, for example, has a fixed exchange rate in relation to the US-Dollar.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.