International competitiveness

Showing 1-1 of 1 results
Effective exchange rates

Effective exchange rates

carol.reyes.dulong
Open Dataset
Creators: BIS statistics
Publication Date: 2025-04-03
Creators: BIS statistics

The BIS effective exchange rates data set covers long time series on nominal and real effective exchange rates. They can serve as a measure of international competitiveness, components of financial conditions indices or as a gauge of the transmission of external shocks.

The broad effective exchange rate indices cover 64 economies. Narrow indices include 26 and 27 economies for the nominal and real indices, respectively. Nominal effective exchange rates (NEER) are calculated as geometric trade-weighted averages of bilateral exchange rates. Real effective exchange rates (REER) are derived by adjusting the NEER by relative consumer prices.

Specifically, changes in the REER take into account both nominal exchange rate developments and the inflation differential against a basket of trading partners. An increase in NEER indicates an appreciation in nominal terms, whereas an increase in REER corresponds to an appreciation in real terms.

The weights used in the calculations of the effective exchange rates are derived from manufacturing trade flows. They capture both direct bilateral trade and third-market competition by double-weighting. To account for changes in trade over time, the weighting pattern is time-varying on a three-year basis. For instance, the effective exchange rates index for 2009 is calculated using the weights which refer to the period from 2008 to 2010. The weights of 1990-92 are applied to data prior to 1990, while the most recent set of weights is also used to calculate effective exchange rates for the latest period. Whenever possible, the BIS uses published US dollar exchange rates and consumer prices as inputs for the effective exchange rates.

Sign In

New to BERD@NFDI? Register

Forgot password?

Register

Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.