New Zealand - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in New Zealand was 107.19 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 112.87 in 2014 and a minimum value of 75.59 in 2001.

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 85.27
1980 84.52
1981 85.89
1982 88.42
1983 85.28
1984 79.15
1985 80.67
1986 81.56
1987 94.24
1988 101.12
1989 96.19
1990 93.59
1991 89.01
1992 79.79
1993 82.59
1994 87.98
1995 93.18
1996 99.25
1997 101.32
1998 88.64
1999 84.80
2000 77.02
2001 75.59
2002 82.55
2003 93.80
2004 100.25
2005 105.75
2006 98.08
2007 104.92
2008 97.49
2009 91.34
2010 100.00
2011 104.19
2012 107.71
2013 109.98
2014 112.87
2015 104.98
2016 105.86
2017 107.38
2018 102.87
2019 101.35
2020 100.57
2021 107.19

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