Glossary
What is the Exchange Rate?
FX / spot rate
Definition
An exchange rate is the price of one currency in terms of another — for example, how many Brazilian reais (BRL) one US dollar buys. The "spot" rate is the current market price for immediate settlement.
Why it matters
Exchange rates affect inflation (via import prices), trade competitiveness, debt burdens and investment returns. In LatAm they can be highly volatile, making them critical to watch.