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

The value for Real effective exchange rate index (2010 = 100) in Cyprus was 85.53 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 111.50 in 1980 and a minimum value of 85.53 in 2021.

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 111.50
1981 107.74
1982 105.22
1983 103.00
1984 102.04
1985 102.21
1986 98.11
1987 93.19
1988 92.35
1989 90.60
1990 88.95
1991 88.52
1992 91.38
1993 91.13
1994 93.42
1995 94.53
1996 93.78
1997 92.22
1998 95.67
1999 93.77
2000 91.15
2001 92.06
2002 94.85
2003 101.52
2004 103.00
2005 102.36
2006 101.71
2007 100.93
2008 103.75
2009 104.66
2010 100.00
2011 100.06
2012 97.38
2013 96.48
2014 94.87
2015 88.80
2016 88.81
2017 88.80
2018 90.06
2019 87.91
2020 87.14
2021 85.53

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