Meaning of the word "equilibrium exchange rate" in English

What does "equilibrium exchange rate" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

equilibrium exchange rate

US /ˌiːkwɪˈlɪbriəm ɪksˈtʃeɪndʒ reɪt/
UK /ˌiːkwɪˈlɪbriəm ɪksˈtʃeɪndʒ reɪt/
"equilibrium exchange rate" picture

Noun

1.

The exchange rate at which the quantity of a currency demanded in the foreign exchange market equals the quantity supplied, resulting in a stable exchange rate without pressure for appreciation or depreciation.

Example:
Economists often analyze the factors that determine the equilibrium exchange rate.
Achieving a stable equilibrium exchange rate is crucial for international trade.
Learn This Word at Lingoland