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

The value for Real effective exchange rate index (2010 = 100) in Bolivia was 150.99 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 503.73 in 1985 and a minimum value of 85.48 in 2006.

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 173.93
1981 220.87
1982 238.51
1983 222.45
1984 293.46
1985 503.73
1986 147.50
1987 140.05
1988 133.90
1989 128.86
1990 106.32
1991 110.46
1992 108.58
1993 107.50
1994 102.57
1995 99.83
1996 104.47
1997 106.77
1998 111.66
1999 114.98
2000 113.12
2001 111.14
2002 109.52
2003 98.57
2004 92.12
2005 87.05
2006 85.48
2007 86.65
2008 97.21
2009 105.95
2010 100.00
2011 102.29
2012 106.66
2013 112.28
2014 120.09
2015 137.69
2016 143.33
2017 140.11
2018 143.23
2019 149.81
2020 157.58
2021 150.99

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