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

The value for Real effective exchange rate index (2010 = 100) in Colombia was 65.05 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 157.42 in 1982 and a minimum value of 65.05 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 136.77
1981 147.77
1982 157.42
1983 156.19
1984 145.87
1985 127.39
1986 94.48
1987 84.33
1988 81.82
1989 78.66
1990 69.13
1991 68.80
1992 69.08
1993 74.47
1994 90.28
1995 93.67
1996 99.25
1997 105.53
1998 99.07
1999 89.89
2000 81.41
2001 78.86
2002 78.67
2003 68.94
2004 75.19
2005 84.78
2006 82.99
2007 92.30
2008 95.31
2009 90.41
2010 100.00
2011 100.13
2012 105.34
2013 101.29
2014 95.87
2015 77.62
2016 74.00
2017 76.43
2018 77.23
2019 72.70
2020 67.08
2021 65.05

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