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

The value for Real effective exchange rate index (2010 = 100) in Japan was 70.62 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 135.36 in 1995 and a minimum value of 69.42 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
1980 73.81
1981 78.92
1982 71.56
1983 77.48
1984 80.88
1985 82.90
1986 106.28
1987 111.96
1988 118.66
1989 108.78
1990 97.31
1991 103.91
1992 106.96
1993 125.22
1994 133.13
1995 135.36
1996 113.72
1997 106.95
1998 106.96
1999 118.84
2000 125.43
2001 111.75
2002 104.16
2003 105.05
2004 106.09
2005 99.47
2006 90.06
2007 82.47
2008 88.61
2009 99.56
2010 100.00
2011 101.13
2012 99.89
2013 79.63
2014 74.57
2015 69.42
2016 78.84
2017 75.03
2018 74.38
2019 76.53
2020 77.25
2021 70.62

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