Does wise use a real exchange rate?
I'm curious about Wise's exchange rate policy. I want to know if they use a real, live exchange rate for their currency conversions or if they apply any additional fees or margins on top of it.
How is real exchange rate related to nominal exchange rate?
Could you elaborate on the relationship between the real exchange rate and the nominal exchange rate? How do they differ, and how do they interact with each other? Is there a specific formula or methodology used to calculate the real exchange rate, and how does it take into account factors such as inflation? Additionally, how does the real exchange rate impact international trade and economic activity, and what are some potential implications for investors and policymakers?
What is a real exchange rate?
Could you elaborate on the concept of a real exchange rate? I'm curious to understand how it differs from the nominal exchange rate and why it's considered a crucial indicator in international finance. Specifically, how does it factor in inflation rates between two countries? And what are some practical implications of analyzing real exchange rate movements? Does it offer insights into the competitiveness of a country's exports, for instance? I'd appreciate a concise yet thorough explanation of the real exchange rate and its significance in today's global economy.