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

The value for Real effective exchange rate index (2010 = 100) in Malta was 93.56 as of 2021. As the graph below shows, over the past 42 years this indicator reached a maximum value of 121.48 in 1982 and a minimum value of 86.37 in 1993.

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
1979 102.82
1980 108.30
1981 117.52
1982 121.48
1983 118.32
1984 116.76
1985 113.23
1986 107.16
1987 103.77
1988 103.37
1989 101.07
1990 97.35
1991 95.03
1992 91.44
1993 86.37
1994 87.85
1995 89.30
1996 88.87
1997 89.88
1998 94.37
1999 92.49
2000 90.42
2001 91.43
2002 93.84
2003 98.89
2004 102.79
2005 101.59
2006 102.17
2007 103.69
2008 105.33
2009 106.30
2010 100.00
2011 99.73
2012 95.25
2013 97.15
2014 96.62
2015 89.87
2016 91.42
2017 92.44
2018 93.83
2019 92.25
2020 93.46
2021 93.56

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