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

The value for Real effective exchange rate index (2010 = 100) in Bahrain was 103.31 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 229.86 in 1984 and a minimum value of 93.14 in 2011.

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 174.72
1981 193.45
1982 216.69
1983 224.68
1984 229.86
1985 223.40
1986 182.00
1987 157.34
1988 145.82
1989 148.03
1990 135.96
1991 131.07
1992 124.35
1993 130.49
1994 125.98
1995 120.13
1996 119.44
1997 127.32
1998 130.21
1999 126.37
2000 129.22
2001 133.14
2002 136.23
2003 125.67
2004 114.93
2005 109.12
2006 111.99
2007 105.09
2008 97.84
2009 102.43
2010 100.00
2011 93.14
2012 95.71
2013 97.72
2014 99.32
2015 107.05
2016 110.21
2017 110.13
2018 109.31
2019 112.05
2020 108.76
2021 103.31

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