International real effective exchange rates

Description: The real effective exchange rates take into account not only changes in market exchange rates, but also variations in relative price levels, and therefore can be used as indicators of competitiveness. The change in a country’s index of relative prices between two years is obtained by comparing the change in the country’s price index to a weighted average of changes in its competitors’ price indices, using the weighting matrix for the current year (based on the importance of bilateral trade).

Source: Eurostat, ECB.

Definitions and terms: Real Effective Exchange Rates

Index: Belgium, Germany, Ireland, Greece, Spain, France, Italy, Luxembourg, Netherlands, Austria, Portugal, Slovenia, Finland, Euro area, EA-15, Denmark, Sweden, United Kingdom, Bulgaria, Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Romania, Slovakia, EU, EU-27, Norway, Switzerland, U.S.A., Japan, Eurostat, OECD, real effective exchange rates, competitiveness.