Exchange Rates Defined
- An exchange rate is the price of one currency in terms of another, e.g. £1 = €1.18
- International currencies are essentially products that can be bought and sold on the foreign exchange market (forex)
- International currencies are essentially products that can be bought and sold on the foreign exchange market (forex)
- The Central Bank of a country controls the exchange rate system that is used in determining the value of a nation's currency
- Exchange rates are an important economic influence for businesses that import raw materials and components, and for businesses that export their products