Armenia - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Armenia was 96.27 as of 2021. As the graph below shows, over the past 27 years this indicator reached a maximum value of 107.81 in 2008 and a minimum value of 32.67 in 1994.

Definition: Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs.

Source: International Monetary Fund, International Financial Statistics.

See also:

Year Value
1994 32.67
1995 52.12
1996 70.86
1997 69.85
1998 74.25
1999 72.78
2000 74.01
2001 73.04
2002 73.66
2003 67.94
2004 71.63
2005 80.13
2006 86.97
2007 99.48
2008 107.81
2009 99.34
2010 100.00
2011 99.13
2012 94.35
2013 96.02
2014 100.11
2015 103.12
2016 102.50
2017 100.19
2018 100.48
2019 103.09
2020 100.94
2021 96.27

Development Relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world.

Limitations and Exceptions: Because of conceptual and data limitations, changes in real effective exchange rates should be interpreted with caution.

Statistical Concept and Methodology: The real effective exchange rate is a nominal effective exchange rate index adjusted for relative movements in national price or cost indicators of the home country, selected countries, and the euro area. A nominal effective exchange rate index is the ratio (expressed on the base 2010 = 100) of an index of a currency's period-average exchange rate to a weighted geometric average of exchange rates for currencies of selected countries and the euro area. For most high-income countries weights are derived from industrial country trade in manufactured goods. Data are compiled from the nominal effective exchange rate index and a cost indicator of relative normalized unit labor costs in manufacturing. For selected other countries the nominal effective exchange rate index is based on manufactured goods and primary products trade with partner or competitor countries. For these countries the real effective exchange rate index is the nominal index adjusted for relative changes in consumer prices; an increase represents an appreciation of the local currency.

Base Period: 2010

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Exchange rates & prices