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

The value for Real effective exchange rate index (2010 = 100) in Finland was 97.79 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 142.16 in 1990 and a minimum value of 96.11 in 2015.

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 112.59
1980 116.60
1981 119.84
1982 123.29
1983 119.64
1984 123.63
1985 124.53
1986 123.72
1987 126.83
1988 131.26
1989 138.37
1990 142.16
1991 135.29
1992 117.39
1993 99.87
1994 106.36
1995 115.82
1996 110.65
1997 105.74
1998 106.32
1999 105.37
2000 99.99
2001 100.63
2002 102.08
2003 107.06
2004 107.01
2005 103.83
2006 102.48
2007 103.95
2008 105.69
2009 106.70
2010 100.00
2011 99.81
2012 97.00
2013 98.95
2014 100.46
2015 96.11
2016 97.23
2017 96.67
2018 98.64
2019 97.02
2020 98.23
2021 97.79

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