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

The value for Real effective exchange rate index (2010 = 100) in Algeria was 86.59 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 449.52 in 1985 and a minimum value of 86.59 in 2021.

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 314.26
1981 349.10
1982 365.18
1983 383.02
1984 417.27
1985 449.52
1986 415.06
1987 367.19
1988 303.83
1989 260.61
1990 220.57
1991 131.55
1992 134.92
1993 161.84
1994 139.74
1995 117.14
1996 119.65
1997 129.17
1998 135.55
1999 125.32
2000 119.42
2001 123.21
2002 114.23
2003 103.08
2004 103.52
2005 101.74
2006 101.32
2007 99.92
2008 102.24
2009 100.28
2010 100.00
2011 99.12
2012 103.92
2013 101.77
2014 102.88
2015 96.51
2016 95.54
2017 97.83
2018 93.27
2019 95.40
2020 91.02
2021 86.59

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