Trinidad and Tobago - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Trinidad and Tobago was 126.00 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 132.49 in 2015 and a minimum value of 67.26 in 1997.

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 76.52
1980 78.50
1981 86.40
1982 95.76
1983 109.69
1984 125.94
1985 131.68
1986 91.10
1987 84.42
1988 79.80
1989 78.98
1990 81.05
1991 81.08
1992 82.79
1993 74.72
1994 69.62
1995 68.04
1996 68.74
1997 67.26
1998 69.89
1999 71.04
2000 72.64
2001 76.76
2002 78.70
2003 77.37
2004 76.00
2005 77.30
2006 80.44
2007 81.89
2008 86.78
2009 94.83
2010 100.00
2011 98.71
2012 107.32
2013 111.09
2014 117.53
2015 132.49
2016 131.35
2017 127.97
2018 126.32
2019 128.78
2020 130.35
2021 126.00

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