An exchange rate is the relative value of one country’s currency versus another. According to the most recent BIS Triennial Central Bank Survey on foreign exchange and over-the-counter (OTC ...

photographereddie / Getty Images A spot exchange rate is the current price at which a person can exchange one currency for another at a specific time. Put simply, a spot exchange rate refers to ...

We also need to consider what happens to the exchange rate. Let’s think about this in more concrete terms. Say we impose a 50% tariff on washing machines from Europe. It has become common for ...