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International Trade vocabulary · Foreign Exchange

Exchange rate

Meaning in international trade, with examples

nounCore term

In international trade, exchange rate means: The price of one currency expressed in another, for example how many Turkish lira you need to buy one euro.

In Turkish: döviz kuru, kur

How it is used

Central to pricing, invoicing and accounting in trade. People talk about rates rising, falling or being volatile, and about the buying and selling rate. Contracts sometimes state which exchange rate will be used and on which date.

Example sentences

  1. The exchange rate moved by almost 4 percent between the order and the payment.

  2. Which exchange rate should we use to convert the invoice into lira?

Common collocations

  • exchange rate risk
  • favorable exchange rate
  • buying exchange rate
  • fixed exchange rate
  • exchange rate fluctuations
  • foreign currencyMoney in the currency of another country, such as US dollars or euros for a company based in Turkey.
  • spot rateThe exchange rate for buying or selling a currency for immediate delivery, which for most currencies means settlement within two business days.
  • currency riskThe risk that a change in exchange rates will reduce the value of money you will receive, or raise the cost of money you will pay, in another currency.
  • hedgeTo reduce the risk of losing money from future price or exchange-rate changes, for example by fixing today the rate for a payment that will arrive later.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Foreign Exchange

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