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

The value for Real effective exchange rate index (2010 = 100) in Malaysia was 83.23 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 183.87 in 1984 and a minimum value of 83.23 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 164.05
1980 158.16
1981 158.93
1982 168.99
1983 176.96
1984 183.87
1985 174.72
1986 146.69
1987 139.05
1988 126.42
1989 124.26
1990 119.09
1991 115.67
1992 123.38
1993 124.10
1994 120.18
1995 120.41
1996 124.88
1997 120.68
1998 96.39
1999 97.25
2000 98.51
2001 103.33
2002 103.46
2003 97.87
2004 93.47
2005 93.30
2006 96.29
2007 98.08
2008 97.79
2009 94.94
2010 100.00
2011 99.83
2012 99.52
2013 98.99
2014 97.94
2015 89.61
2016 86.56
2017 85.14
2018 88.66
2019 87.48
2020 84.34
2021 83.23

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