equilibrium exchange rate

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

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Economists often analyze the factors that determine the equilibrium exchange rate.
Achieving a stable equilibrium exchange rate is crucial for international trade.