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

The value for Real effective exchange rate index (2010 = 100) in Chile was 87.71 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 194.82 in 1981 and a minimum value of 84.89 in 2020.

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 164.33
1981 194.82
1982 175.70
1983 143.91
1984 142.70
1985 120.73
1986 101.66
1987 93.40
1988 87.76
1989 90.12
1990 86.26
1991 88.31
1992 93.30
1993 95.13
1994 98.47
1995 104.42
1996 106.94
1997 114.77
1998 112.73
1999 107.37
2000 106.51
2001 95.94
2002 91.67
2003 86.22
2004 91.04
2005 96.32
2006 100.14
2007 97.52
2008 98.26
2009 95.13
2010 100.00
2011 100.71
2012 102.91
2013 101.35
2014 91.87
2015 90.99
2016 92.62
2017 95.73
2018 97.10
2019 92.51
2020 84.89
2021 87.71

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