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

The value for Real effective exchange rate index (2010 = 100) in Venezuela was 740.67 as of 2016. As the graph below shows, over the past 36 years this indicator reached a maximum value of 740.67 in 2016 and a minimum value of 36.83 in 1990.

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
1980 80.57
1981 90.35
1982 97.69
1983 103.48
1984 72.88
1985 72.75
1986 68.16
1987 42.71
1988 52.12
1989 41.72
1990 36.83
1991 39.44
1992 41.07
1993 43.19
1994 41.76
1995 51.73
1996 42.90
1997 54.78
1998 67.48
1999 76.98
2000 79.97
2001 85.05
2002 66.50
2003 57.74
2004 55.76
2005 54.59
2006 57.81
2007 63.35
2008 75.97
2009 99.07
2010 100.00
2011 70.80
2012 84.99
2013 83.23
2014 128.95
2015 310.07
2016 740.67

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