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

The value for Real effective exchange rate index (2010 = 100) in Malawi was 87.42 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 214.59 in 1984 and a minimum value of 65.31 in 2013.

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 200.31
1981 205.06
1982 197.92
1983 202.21
1984 214.59
1985 203.96
1986 182.54
1987 164.83
1988 180.23
1989 187.72
1990 186.88
1991 198.00
1992 181.61
1993 185.25
1994 131.39
1995 115.27
1996 166.35
1997 173.18
1998 129.10
1999 129.75
2000 134.28
2001 145.14
2002 158.32
2003 110.66
2004 98.74
2005 100.55
2006 97.16
2007 95.15
2008 97.96
2009 107.25
2010 100.00
2011 96.75
2012 78.53
2013 65.31
2014 70.58
2015 79.57
2016 68.35
2017 71.33
2018 76.75
2019 86.30
2020 92.87
2021 87.42

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