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

The value for Real effective exchange rate index (2010 = 100) in Luxembourg was 100.92 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 110.39 in 1979 and a minimum value of 93.16 in 2000.

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
1979 110.39
1980 107.80
1981 104.94
1982 98.72
1983 98.86
1984 99.36
1985 99.84
1986 100.55
1987 100.40
1988 99.74
1989 99.51
1990 101.05
1991 100.66
1992 101.00
1993 101.22
1994 102.14
1995 104.05
1996 100.86
1997 96.39
1998 96.07
1999 94.99
2000 93.16
2001 93.68
2002 94.84
2003 98.35
2004 99.42
2005 99.26
2006 99.79
2007 100.72
2008 101.81
2009 102.63
2010 100.00
2011 100.65
2012 98.80
2013 100.55
2014 100.78
2015 97.09
2016 98.10
2017 98.92
2018 100.34
2019 99.59
2020 100.87
2021 100.92

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