Real Effective Exchange Rate - REER

外汇网2021-06-19 13:41:44 143

The weighted average of a country's currency relative to an index or basket of other major currencies adjusted for the effects of inflation. The weights are determined by comparing the relative trade balances, in terms of one country's currency, with each other country within the index.

|||This exchange rate is used to determine an inpidual country's currency value relative to the other major currencies in the index, as adjusted for the effects of inflation. All currencies within the said index are the major currencies being traded today: U.S. dollar, Japanese yen, euro, etc.

This is also the value that an inpidual consumer will pay for an imported good at the consumer level. This price will include any tariffs and transactions costs associated with importing the good.

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