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

The value for Real effective exchange rate index (2010 = 100) in Italy was 94.74 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 118.38 in 1990 and a minimum value of 89.29 in 1995.

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 97.46
1981 93.90
1982 95.02
1983 100.23
1984 101.09
1985 100.69
1986 107.80
1987 110.95
1988 110.08
1989 112.77
1990 118.38
1991 118.34
1992 116.51
1993 98.13
1994 95.71
1995 89.29
1996 99.25
1997 98.76
1998 99.23
1999 97.97
2000 93.17
2001 94.44
2002 96.74
2003 102.86
2004 104.63
2005 102.83
2006 102.44
2007 103.08
2008 103.93
2009 105.07
2010 100.00
2011 99.87
2012 97.76
2013 99.48
2014 99.33
2015 93.88
2016 94.59
2017 95.27
2018 96.80
2019 94.50
2020 95.00
2021 94.74

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