Papua New Guinea - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Papua New Guinea was 122.37 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 136.54 in 1981 and a minimum value of 76.77 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 133.19
1981 136.54
1982 134.26
1983 130.07
1984 131.05
1985 125.99
1986 119.08
1987 117.61
1988 116.59
1989 119.83
1990 107.62
1991 111.05
1992 110.87
1993 115.67
1994 109.98
1995 93.38
1996 99.98
1997 100.51
1998 88.26
1999 80.03
2000 87.86
2001 82.18
2002 76.77
2003 85.07
2004 87.89
2005 88.58
2006 88.87
2007 84.26
2008 94.83
2009 102.04
2010 100.00
2011 109.07
2012 128.26
2013 126.97
2014 122.74
2015 127.94
2016 121.16
2017 122.31
2018 120.85
2019 124.76
2020 127.40
2021 122.37

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