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

The value for Real effective exchange rate index (2010 = 100) in Portugal was 95.84 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 103.96 in 2008 and a minimum value of 72.77 in 1983.

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 75.77
1980 76.49
1981 80.26
1982 79.06
1983 72.77
1984 73.67
1985 74.44
1986 74.10
1987 73.28
1988 74.50
1989 78.08
1990 83.28
1991 89.20
1992 97.16
1993 94.56
1994 93.54
1995 96.41
1996 97.19
1997 95.54
1998 95.93
1999 95.42
2000 93.13
2001 95.39
2002 97.79
2003 102.20
2004 103.22
2005 102.42
2006 102.99
2007 103.94
2008 103.96
2009 103.04
2010 100.00
2011 100.81
2012 99.28
2013 99.28
2014 98.47
2015 95.42
2016 96.72
2017 96.81
2018 97.81
2019 96.28
2020 97.10
2021 95.84

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