Way of stating the exchange rate Per the comments in the majority of the article majority of economics textbooks and the actual real world usage I restated the definition of nominal exchange rate and subsequently corrected the formula for RER to match Previously stated as the amount of domestic currency required for a unit of foreign currency the reality is that the forex value is generally stated in most nations as amount of foreign currency required to buy one unit of local currency Also I changed the usage of P to P f which is more common and even provides more clarity when using English for the descriptions as is the case on an English speaking wikipage If you have issues with this please feel free to explain why Cheers