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

The value for Real effective exchange rate index (2010 = 100) in Norway was 83.11 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 102.28 in 1982 and a minimum value of 78.20 in 2020.

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 93.13
1980 94.56
1981 98.12
1982 102.28
1983 101.45
1984 99.87
1985 98.78
1986 97.33
1987 99.33
1988 102.13
1989 101.66
1990 100.91
1991 97.22
1992 97.34
1993 93.57
1994 91.39
1995 94.10
1996 93.55
1997 94.19
1998 91.90
1999 91.48
2000 89.44
2001 92.57
2002 100.45
2003 99.95
2004 95.81
2005 99.02
2006 98.74
2007 98.91
2008 99.05
2009 96.55
2010 100.00
2011 100.39
2012 99.60
2013 98.10
2014 93.19
2015 84.31
2016 84.82
2017 85.64
2018 86.06
2019 83.74
2020 78.20
2021 83.11

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