South Africa - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in South Africa was 77.47 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 181.37 in 1983 and a minimum value of 70.42 in 2016.

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 151.08
1980 165.20
1981 173.97
1982 164.85
1983 181.37
1984 160.06
1985 121.47
1986 112.12
1987 126.62
1988 120.50
1989 121.37
1990 125.04
1991 129.95
1992 134.10
1993 131.43
1994 125.85
1995 122.43
1996 112.62
1997 119.06
1998 109.49
1999 103.56
2000 100.41
2001 88.66
2002 75.99
2003 98.67
2004 104.60
2005 104.48
2006 98.52
2007 92.02
2008 80.37
2009 87.47
2010 100.00
2011 98.26
2012 92.43
2013 82.09
2014 77.06
2015 75.16
2016 70.42
2017 79.36
2018 80.72
2019 78.14
2020 70.91
2021 77.47

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