definitions Nominal Exchange Rate

Nominal Exchange Rate

The actual exchange rate; it is expressed in current units of currency. The actual exchange rate at which currencies are exchanged on an exchange market. It contrasts with real exchange rate. The interest rate actually observed in the market, in contrast to the real interest rate. Interest rate unadjusted for inflation. The price quoted on lending and borrowing transactions. It is expressed as the rate of exchange between current and future units of currency unadjusted for inflation.