real exchange rate UK US noun [C]
► ECONOMICS, FINANCE the rate at which the currency of one country would be changed for another if differences in prices and wages between the two countries are taken into account. Real exchange rates are used to compare the values of currencies over time when considering the different rates of inflation in different countries: »
Evidence suggests that countries which aim at maintaining competitive real exchange rates perform better economically than those which do not.
Financial and business terms. 2012.