Par Value

Summary of Par Value

The nominal value assigned to a currency by its issuing authority. Normally, this value is expressed as a quantity of gold, or another currency convertible into gold. When the market value of a currency, expressed in terms of other convertible currencies, deviates significantly from its par value over a protracted period, it may be necessary to set a new par value, i.e., to revalue the currency. Normally, revaluation occurs after consultation with the International Monetary Fund.

(Main Author: William J. Miller)

Par Value in International Trade

Meaning of Par Value, according to the Dictionary of International Trade (Global Negotiator): An official fixed rate of exchange between two currencies, or between a currency and a basket of currencies or a specific weight of gold.