Purchasing power

economic theory that states that the exchange rate between two countries is equal to the ratio of the currencies' respective purchasing power

rate at which one currency will be exchanged for another

level of ownership and consumption of goods and services

number and quality or value of goods and services that can be purchased with a unit of currency

informal way of measuring the purchasing power of two currencies

hypothetical unit of currency

informal guide to measure purchasing power parity comparing exchange rates in African countries