Hello, the real exchange rate is determined by the supply and demand of the currencies of the two countries (in the foreign exchange market). We can regard the currencies of the two countries as two commodities, and their relative prices are determined by their respective supply and demand, which has nothing to do with the prices of the two countries, but by the supply and demand in the foreign exchange market, which measures the international competitiveness of a country's goods (because it is determined by supply and demand).

Nominal exchange rate is obtained after considering the inflation of two countries on the basis of the real exchange rate, which is expressed by the formula: nominal exchange rate = real exchange rate * inflation rate, which is based on the real exchange rate and then considers the influence of inflation to measure the purchasing power level of a country's currency (because the price is considered).