Romania - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Romania was 99.60 as of 2021. As the graph below shows, over the past 30 years this indicator reached a maximum value of 112.66 in 2007 and a minimum value of 42.10 in 1992.

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
1991 67.11
1992 42.10
1993 57.14
1994 62.91
1995 61.41
1996 55.20
1997 65.16
1998 84.70
1999 72.66
2000 81.77
2001 82.98
2002 83.56
2003 81.08
2004 82.87
2005 97.47
2006 104.37
2007 112.66
2008 106.41
2009 98.65
2010 100.00
2011 102.57
2012 96.59
2013 101.13
2014 101.83
2015 98.34
2016 96.52
2017 95.08
2018 97.72
2019 97.30
2020 98.75
2021 99.60

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