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- A nominal exchange rate indicates how much one currency we can buy with one unit of another currency. In contrast, the real exchange rate compares the general price level of certain commodities or baskets of commodities of the two countries.efinancemanagement.com/international-financial-management/real-vs-nominal-…
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WEBThe real exchange rate (RER) between two currencies is the product of the nominal exchange rate (the dollar cost of a euro, for example) and the ratio of prices between the two countries.
WEBAug 17, 2021 · To calculate the real exchange rate, we use the nominal exchange rate to express the relative prices of goods and services in the two countries in the same currency. To calculate the real exchange …
WEBJun 30, 2021 · The nominal effective exchange rate (NEER) and the real effective exchange rate (REER) are both indicators of a nation's competitiveness in relation to its trading partners.
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