Nilai Tukar
In short
Nilai tukar is the rate at which one currency can be exchanged for another in the global market.
In plain words
It shows how much your money is worth in a different country. If the rate changes, you might get more or less foreign money for the same amount of your own.
A simple example
If you travel from London to Kuala Lumpur, the nilai tukar tells you how many Malaysian Ringgit you receive for every British Pound you spend.
Why it matters
It affects the cost of international travel and the price of imported goods. Businesses also rely on stable rates to trade products across borders without losing money.
Easy to mix up
It is often confused with inflation, which is the rising cost of goods rather than the value of money itself.