About
The BIS effective exchange rates data set covers long time series on nominal and real effective exchange rates. They can serve as a measure of international competitiveness, components of financial conditions indices or as a gauge of the transmission of external shocks.
The broad effective exchange rate indices cover 64 economies. Narrow indices include 26 and 27 economies for the nominal and real indices, respectively. Nominal effective exchange rates (NEER) are calculated as geometric trade-weighted averages of bilateral exchange rates. Real effective exchange rates (REER) are derived by adjusting the NEER by relative consumer prices.
Specifically, changes in the REER take into account both nominal exchange rate developments and the inflation differential against a basket of trading partners. An increase in NEER indicates an appreciation in nominal terms, whereas an increase in REER corresponds to an appreciation in real terms.
The weights used in the calculations of the effective exchange rates are derived from manufacturing trade flows. They capture both direct bilateral trade and third-market competition by double-weighting. To account for changes in trade over time, the weighting pattern is time-varying on a three-year basis. For instance, the effective exchange rates index for 2009 is calculated using the weights which refer to the period from 2008 to 2010. The weights of 1990-92 are applied to data prior to 1990, while the most recent set of weights is also used to calculate effective exchange rates for the latest period. Whenever possible, the BIS uses published US dollar exchange rates and consumer prices as inputs for the effective exchange rates.
Metadata
- Seasonal adjustment
Non seasonally adjusted
- Frequencies
Monthly
Daily
- Contact
- BIS statistics
- Units
Index, 2020 = 100
- Next release date
- Last release date
- All release dates
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Methodology
The new BIS effective exchange rate indices
The BIS effective exchange rate (EER) indices have been expanded and updated. The new indices cover 52 economies based on a consistent methodology, and reflect recent developments in global trade by using time-varying weighting patterns. The newly calculated indices have been made available to the public on the BIS website.
Research and publications
Recent enhancements to the BIS statistics
The BIS regularly seeks to enhance its statistical offerings to support monetary and financial stability analysis, in close coordination with central banks and other national authorities and international organisations. The exposure of economies to foreign currency risk is one potential source of vulnerability that has received increased attention in recent years, and the relevant data gaps are being addressed in the second phase of the Data Gaps Initiative (DGI) endorsed by the G20 (BIS-FSB-IMF (2015), FSB-IMF (2017)). Concurrently with this issue of the Quarterly Review, the BIS is expanding the data it publishes on exchange rates, on the currency composition of cross-border positions and on ...
FAQs
How often and when are the effective exchange rates updated?
Monthly data are released around mid-month. Daily data are updated around mid-week. The publication date and the latest reference period are shown in the Statistics release calendar.
What are the main sources for the BIS effective exchange rates?
Whenever available, the BIS uses the published data on US dollar exchange rates and consumer prices as input data to the BIS EERs. The monthly exchange rates used are the business day averages.
What is the coverage of the effective exchange rates (EER) data set?
Monthly and daily data are available, the latter available only as nominal indices. The so-called broad indices are available for 64 economies from 1994 and 1996 for monthly and daily data, respectively. In addition, narrow indices are available for 27 economies (26 for nominal indices) from 1964 and 1983 for monthly and daily data, respectively.
What are the BIS effective exchange rates (EERs) and why are they important?
EER indices are calculated as the geometric weighted average of a basket of bilateral exchange rates. Real EER are the nominal EER indices adjusted with the corresponding relative consumer prices. They are typically used as a component of financial or monetary conditions, as an indicator of international price competitiveness and as a gauge for the transmission of external shocks. For example, an increase in the real indices indicates an appreciation, and hence, a decrease in international price competitiveness.
Where can I find documentation and information on the methodology?
For the methodology of the BIS effective exchange rates, see "The new BIS effective exchange rate indices", BIS Quarterly Review, March 2006.
What changes have been introduced in the effective exchange rates dataset since its initial release in 2006?
The coverage of the data set has been gradually expanded from 52 to 64 economies in 2023. In April 2019, the BIS excluded the currency of Venezuela from the broad basket indices.
How are the weights calculated?
The weights are derived from manufacturing trade flows and capture both direct bilateral trade and third-market competition by double-weighting. For more details, see "The new BIS effective exchange rate indices", BIS Quarterly Review, March 2006.
Which weights are applied to the historical and most recent data?
To accommodate rapidly changing trade data, the BIS adopts time-varying weights in the EER calculations. More specifically, it assigns the three-year average trade weights of 1993-95, 1996-98, 1999-2001, 2002-04, 2005-07, 2008-10, 2011-13, 2014-16 and 2017-19 to the corresponding periods, and then constructs chain-linked indices. This last set of weights is also used to calculate EERs for the latest period until the next set of three-year trade data becomes fully available.
In the published Excel file containing the trade weights, I cannot find pre-1990 weights, while the "narrow indices" are available from 1964. What weights are you using for those data prior to 1990?
The weights of 1990-92 are applied to data prior to 1990.
What is the EER for euro area member countries?
The EER indices for euro area member countries are computed based on the legacy currencies prior to the adoption of the euro and the euro afterwards. EER indices for euro area member countries take intra-euro area trade into account, while the index for the euro area as an aggregate excludes intra-euro area trade.
Does the value below/above 100 implies undervaluation/overvaluation?
The index levels do not provide any information concerning the over- or undervaluation of a given currency. They show the change compared with the base year. For indices with a base year 2020, a level of 120 indicates an appreciation of 20% against the basket since 2020.
