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

The value for Real effective exchange rate index (2010 = 100) in Georgia was 89.01 as of 2021. As the graph below shows, over the past 27 years this indicator reached a maximum value of 110.33 in 2012 and a minimum value of 31.90 in 1994.

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
1994 31.90
1995 71.23
1996 89.92
1997 93.81
1998 91.50
1999 78.27
2000 85.14
2001 85.13
2002 82.55
2003 77.99
2004 83.26
2005 88.76
2006 93.87
2007 97.21
2008 107.60
2009 104.54
2010 100.00
2011 108.42
2012 110.33
2013 107.14
2014 106.26
2015 98.36
2016 99.34
2017 97.75
2018 98.19
2019 93.41
2020 89.14
2021 89.01

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