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

The value for Real effective exchange rate index (2010 = 100) in Israel was 114.02 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 115.32 in 1997 and a minimum value of 87.15 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
1979 94.09
1980 96.08
1981 97.81
1982 102.37
1983 111.49
1984 104.68
1985 102.32
1986 99.76
1987 96.72
1988 106.73
1989 108.07
1990 105.72
1991 107.29
1992 104.55
1993 103.22
1994 104.29
1995 105.09
1996 110.23
1997 115.32
1998 112.22
1999 106.77
2000 112.55
2001 111.45
2002 100.79
2003 95.73
2004 89.87
2005 87.56
2006 87.15
2007 88.19
2008 98.34
2009 95.80
2010 100.00
2011 101.16
2012 95.99
2013 102.30
2014 103.13
2015 101.78
2016 103.37
2017 108.16
2018 106.04
2019 108.87
2020 111.27
2021 114.02

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