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

The value for Real effective exchange rate index (2010 = 100) in Mexico was 81.88 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 137.51 in 1981 and a minimum value of 67.41 in 1987.

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 120.85
1981 137.51
1982 98.72
1983 87.00
1984 101.90
1985 104.75
1986 73.16
1987 67.41
1988 83.65
1989 89.77
1990 91.86
1991 100.72
1992 108.90
1993 117.11
1994 112.34
1995 75.48
1996 84.77
1997 97.60
1998 98.37
1999 106.77
2000 115.54
2001 123.02
2002 123.05
2003 110.19
2004 105.98
2005 109.80
2006 109.90
2007 108.37
2008 106.07
2009 92.78
2010 100.00
2011 99.80
2012 96.63
2013 102.27
2014 101.25
2015 90.75
2016 79.03
2017 80.88
2018 81.00
2019 83.69
2020 77.35
2021 81.88

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