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

The value for Real effective exchange rate index (2010 = 100) in Dominica was 91.48 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 147.92 in 1985 and a minimum value of 91.48 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
1979 109.51
1980 111.91
1981 120.95
1982 124.99
1983 132.99
1984 143.91
1985 147.92
1986 137.21
1987 130.16
1988 125.31
1989 130.70
1990 125.62
1991 127.49
1992 128.57
1993 131.60
1994 127.31
1995 119.99
1996 119.18
1997 119.74
1998 120.35
1999 119.64
2000 120.32
2001 121.94
2002 120.19
2003 117.55
2004 112.81
2005 107.86
2006 106.12
2007 102.69
2008 100.05
2009 101.26
2010 100.00
2011 95.20
2012 95.54
2013 94.52
2014 94.21
2015 98.25
2016 99.37
2017 98.33
2018 96.31
2019 97.99
2020 96.00
2021 91.48

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