Real effective exchange rates for 178 countries: a new database
Last update: 16 October 2020
This database includes real and nominal effective exchange rates from the papers:
- Darvas, Zsolt (2012a) ‘Real effective exchange rates for 178 countries: a new database‘, Working Paper 2012/06, Bruegel, 15 March 2012
- Darvas, Zsolt (2012b) ‘Compositional effects on productivity, labour cost and export adjustment‘, Policy Contribution 2012/11, Bruegel, 22 June 2012
The real effective exchange rate (REER), which measures the development of the real value of a country’s currency against the basket of the trading partners of the country, is a frequently used variable in both theoretical and applied economic research and policy analysis. It is used for a wide variety of purposes, such as assessing the equilibrium value of a currency, the change in price or cost competitiveness, the drivers of trade flows, or incentives for reallocation production between the tradable and the non-tradable sectors.
Due to the importance of the REER in economic research and policy analysis, several institutions, such as the World Bank, the Eurostat, the BIS, the OECD, just to name a few, publish various REER indicators which are freely downloadable. Altogether, these institutions publish data for 113 countries. The countries for which data are available include several advanced and several emerging and developing countries. However, different databases may have different methodologies and even the 109 countries included in the World Bank database miss several dozen countries of the world.
Our database includes the following data:
Annual consumer price index (CPI) based REERs for 178 countries plus the euro area.
It has two versions:
- The broad index considers 172 trading partners and is available from 1995.
- The narrow index considers 67 trading partners and is available from 1960.
Monthly consumer price index (CPI) based REERs for 174 countries plus the euro area.
It also has two versions:
- The broad index considers 143 trading partners and is available from 1993.
- The narrow index considers 38 trading partners and is available from 1970.
Quarterly unit labour cost (ULC) based REERs for 24 countries.
It includes REERs for:
- Total economy,
- Business sector excluding agriculture, construction and real estate activities,
In addition to using actual aggregates, we also calculate constant-sectoral weight aggregates. These ULC-based REERs are calculated against four groups of trading partners:
- 30 trading partners,
- 14 euro-area members (excluding Cyprus, Malta and Luxembourg)
- 9 non-euro area EU countries (Denmark, Sweden, United Kingdom, Bulgaria, Czech Republic, Latvia, Lithuania, Hungary, Poland)
- 7 non-EU countries (Australia, Canada, Japan, Korea, New Zealand, Norway and the United States).
For each REER time series, our dataset also includes the corresponding nominal effective exchange rate (NEER) series.
The database is irregularly updated.