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Effective exchange rate

From Citizendium - Reading time: 1 min

Effective exchange rate [r]: A measure of the value of a currency in the foreign exchange market, compiled from selected bilateral rates after weighting each according to its importance in international trade (also known as its trade-weighted exchange rate). [e]

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Licensed under CC BY-SA 3.0 | Source: https://citizendium.org/wiki/Effective_exchange_rate
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