From Longman Business Dictionaryequilibrium exchange rateequiˌlibrium exˈchange rateFINANCE an exchange rate that would take account of differences in INFLATIONINTEREST RATEs, and other aspects of the economic situationWhen the head of currency research at JP Morgan calculated an equilibrium exchange rate of DM2.95 to the pound, it was based on an assumption that the UK would join the Euro in 2002. → exchange rate
