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

The value for Real effective exchange rate index (2010 = 100) in Netherlands was 101.48 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 111.21 in 1979 and a minimum value of 92.58 in 2000.

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 111.21
1980 107.40
1981 99.68
1982 102.70
1983 101.28
1984 97.86
1985 95.64
1986 101.02
1987 102.95
1988 101.04
1989 97.24
1990 99.34
1991 96.94
1992 98.57
1993 100.11
1994 100.85
1995 105.17
1996 102.79
1997 97.06
1998 98.57
1999 97.39
2000 92.58
2001 95.08
2002 98.36
2003 104.34
2004 105.30
2005 103.80
2006 102.43
2007 103.14
2008 103.66
2009 105.12
2010 100.00
2011 99.41
2012 96.69
2013 99.73
2014 100.23
2015 95.59
2016 96.80
2017 97.49
2018 99.40
2019 99.31
2020 101.25
2021 101.48

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