United Kingdom - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in United Kingdom was 102.34 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 143.82 in 1981 and a minimum value of 97.08 in 2017.

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 119.25
1980 139.43
1981 143.82
1982 138.69
1983 127.38
1984 121.81
1985 124.12
1986 115.55
1987 115.39
1988 118.90
1989 117.14
1990 119.57
1991 123.67
1992 120.21
1993 108.61
1994 108.70
1995 104.07
1996 106.45
1997 123.32
1998 129.25
1999 129.11
2000 130.42
2001 127.26
2002 128.16
2003 122.93
2004 127.77
2005 125.43
2006 126.18
2007 128.27
2008 111.77
2009 100.31
2010 100.00
2011 99.83
2012 103.40
2013 102.05
2014 108.70
2015 113.76
2016 102.38
2017 97.08
2018 98.84
2019 98.42
2020 98.62
2021 102.34

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