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

The value for Real effective exchange rate index (2010 = 100) in Grenada was 90.09 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 132.50 in 1985 and a minimum value of 90.09 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 92.19
1980 95.91
1981 110.90
1982 117.72
1983 124.09
1984 132.37
1985 132.50
1986 123.40
1987 110.95
1988 109.15
1989 114.66
1990 106.57
1991 105.34
1992 104.31
1993 109.94
1994 109.94
1995 106.33
1996 106.81
1997 107.85
1998 108.51
1999 109.32
2000 111.87
2001 112.48
2002 110.59
2003 106.13
2004 102.27
2005 101.16
2006 101.39
2007 98.70
2008 98.98
2009 100.63
2010 100.00
2011 97.06
2012 97.71
2013 96.46
2014 93.63
2015 97.02
2016 99.17
2017 97.82
2018 95.46
2019 96.14
2020 94.28
2021 90.09

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