Dictionary of Finance and Investment Terms: par value of currency
par value of currency
ratio of one nation's currency unit to that of another country, as defined by the official exchange rates between the two countries; also called par of exchange or par exchange rate. Since 1971, exchange rates have been allowed to float; that is, instead of official rates of exchange, currency values are being determined by the forces of supply and demand in combination with the buying and selling by countries of their own currencies in order to stabilize the market value, a form of pegging.
