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

The value for Real effective exchange rate index (2010 = 100) in Lesotho was 79.83 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 207.28 in 1992 and a minimum value of 56.62 in 2002.

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 204.15
1981 199.72
1982 195.33
1983 205.57
1984 203.32
1985 195.57
1986 194.03
1987 187.35
1988 184.97
1989 185.45
1990 180.98
1991 193.22
1992 207.28
1993 206.85
1994 197.29
1995 197.66
1996 178.85
1997 179.14
1998 164.50
1999 148.61
2000 142.94
2001 123.42
2002 56.62
2003 81.31
2004 94.18
2005 95.39
2006 93.89
2007 92.61
2008 85.84
2009 90.54
2010 100.00
2011 99.66
2012 95.40
2013 85.60
2014 80.16
2015 76.33
2016 71.46
2017 78.89
2018 80.55
2019 78.30
2020 72.54
2021 79.83

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