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

The value for Real effective exchange rate index (2010 = 100) in Australia was 90.53 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 109.03 in 2012 and a minimum value of 67.57 in 2001.

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
1980 92.32
1981 100.26
1982 100.65
1983 98.60
1984 101.72
1985 85.61
1986 74.88
1987 74.73
1988 82.67
1989 88.71
1990 86.53
1991 85.14
1992 76.92
1993 71.61
1994 75.19
1995 73.50
1996 80.38
1997 79.97
1998 73.26
1999 73.51
2000 70.45
2001 67.57
2002 70.86
2003 79.37
2004 85.42
2005 87.97
2006 87.24
2007 92.34
2008 90.37
2009 87.59
2010 100.00
2011 106.96
2012 109.03
2013 103.46
2014 98.33
2015 89.86
2016 90.93
2017 93.69
2018 89.95
2019 86.01
2020 85.36
2021 90.53

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