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

The value for Real effective exchange rate index (2010 = 100) in Korea was 143.27 as of 2021. As the graph below shows, over the past 31 years this indicator reached a maximum value of 164.43 in 1996 and a minimum value of 91.61 in 2009.

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
1990 132.77
1991 140.83
1992 131.49
1993 131.41
1994 136.29
1995 152.76
1996 164.43
1997 146.65
1998 97.89
1999 99.29
2000 104.73
2001 98.47
2002 104.45
2003 103.11
2004 107.24
2005 127.02
2006 136.10
2007 137.15
2008 108.14
2009 91.61
2010 100.00
2011 97.49
2012 105.13
2013 119.03
2014 134.52
2015 142.05
2016 139.05
2017 143.07
2018 152.97
2019 147.61
2020 137.16
2021 143.27

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