Sierra Leone - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Sierra Leone was 109.38 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 562.66 in 1984 and a minimum value of 91.35 in 2004.

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 266.02
1981 304.40
1982 373.04
1983 444.75
1984 562.66
1985 490.92
1986 329.47
1987 150.93
1988 178.44
1989 156.33
1990 116.05
1991 117.16
1992 106.14
1993 117.80
1994 135.67
1995 122.56
1996 123.24
1997 140.99
1998 120.29
1999 142.57
2000 130.88
2001 142.82
2002 123.47
2003 102.09
2004 91.35
2005 92.81
2006 96.09
2007 96.66
2008 101.43
2009 103.67
2010 100.00
2011 102.00
2012 118.11
2013 126.76
2014 131.39
2015 142.56
2016 129.60
2017 112.24
2018 101.62
2019 104.89
2020 108.86
2021 109.38

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