Green Rate

Green Rate

Summary of Green Rate

A special rate of exchange used in converting agricultural prices fixed in units of account into national currencies, within the framework of the Common Agricultural Policy (read this and related legal terms for further details) of the European Economic Community. The green rate is established periodically and does not respond to daily fluctuations in the market rates for the national currencies involved. For the main agricultural products, the difference between the market rates for national currencies and the periodically revised green rate is resolved between countries in the form of Monetary Compensatory Amounts (read this and related legal terms for further details).

(Main Author: William J. Miller)



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