Why exchange rates important?

For any exchanges the rates are always involved, to decide its particular market value.

In Foreign Currency Exchange market, exchanged products are currencies, so we say the rate on behalf of exchanging currencies, which describes its value in the market.

For example.. EUR/GBP=0.8650; 1 EURO = 0.8650 GBP ie. 1 GBP = 1/0.8650 EURo ie. 1.1560 EURO

It actually simplifies both currencies market value in Foreign Exchange Market.

Simply exchange rates reflect a country's economic status, growth status, stability when compared to Another Country.