Effective Exchange Rates
First published: 1993
Brief summary
BIS data portal for real and nominal effective exchange rates.
Article
The BIS effective exchange-rate data set contains nominal and real indices designed to summarise how a currency moves against a basket of trading partners. The indices are used in studies of international competitiveness, financial conditions and the transmission of external shocks.
A nominal effective exchange rate is calculated as a geometric trade-weighted average of bilateral exchange rates. A real effective exchange rate adjusts the nominal index for differences in consumer prices between the domestic economy and its trading partners.
The broad indices cover 64 economies, while the narrower series cover a smaller group of major partners and provide longer historical records. The weights are based on manufacturing trade and include both direct bilateral trade and competition in third markets.
An increase in either index represents an appreciation, but the level of an index does not by itself show whether a currency is overvalued or undervalued. The series are index numbers relative to a base period and are available at monthly frequency, with nominal indices also available daily.
Source details and credits
- Source / publisher: BIS
- Source type: Data portal
- URL type: WWW
- Credits: BIS
- URL: https://www.bis.org/statistics/eer.htm