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

The value for Real effective exchange rate index (2010 = 100) in Paraguay was 107.78 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 206.41 in 1981 and a minimum value of 76.92 in 2005.

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 189.87
1981 206.41
1982 177.58
1983 169.18
1984 166.45
1985 143.92
1986 143.96
1987 114.29
1988 122.22
1989 90.98
1990 89.55
1991 100.42
1992 97.40
1993 98.20
1994 103.54
1995 104.66
1996 108.62
1997 111.72
1998 101.93
1999 105.06
2000 101.79
2001 98.05
2002 85.19
2003 79.61
2004 82.04
2005 76.92
2006 86.29
2007 94.47
2008 108.22
2009 99.17
2010 100.00
2011 112.19
2012 110.27
2013 115.33
2014 117.52
2015 114.81
2016 110.83
2017 109.94
2018 113.51
2019 110.21
2020 108.86
2021 107.78

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