effective exchange ratenoun [ C, usually singular ]
ukusabbreviation EXR, also trade-weighted exchange rateECONOMICS, FINANCE a way of measuring the value of a country's currency in relation to the currency of other countries that it trades with:
The euro's effective exchange rate has remained unchanged compared with the level at the end of August.
The real effective exchange rate is an indicator of a country's competitiveness.