effective exchange rate
noun[C,usually singular]
ukus(abbreviationEXR);(alsotrade-weighted exchange rate)ECONOMICS,FINANCE
a way ofmeasuringthevalueof a country'scurrencyinrelationto thecurrencyof othercountriesthat ittradeswith:
The euro'seffectiveexchangeratehasremainedunchangedcomparedwith thelevelat the end ofAugust.
Therealeffectiveexchangerateis anindicatorof a country'scompetitiveness.