Solomon Islands - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Solomon Islands was 118.87 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 151.82 in 1982 and a minimum value of 87.32 in 2004.

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 130.49
1980 138.22
1981 147.49
1982 151.82
1983 137.59
1984 138.96
1985 126.81
1986 107.21
1987 92.84
1988 95.60
1989 98.72
1990 90.63
1991 92.90
1992 91.91
1993 92.26
1994 95.76
1995 93.58
1996 99.52
1997 108.48
1998 105.00
1999 108.92
2000 113.45
2001 122.41
2002 102.29
2003 89.14
2004 87.32
2005 89.24
2006 95.71
2007 94.08
2008 100.56
2009 107.89
2010 100.00
2011 102.47
2012 111.14
2013 118.40
2014 124.43
2015 127.38
2016 127.86
2017 126.36
2018 126.54
2019 127.23
2020 129.72
2021 118.87

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