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

The value for Real effective exchange rate index (2010 = 100) in Nicaragua was 92.77 as of 2021. As the graph below shows, over the past 35 years this indicator reached a maximum value of 2,834.98 in 1987 and a minimum value of 18.73 in 1989.

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
1986 317.75
1987 2,834.98
1988 35.77
1989 18.73
1990 59.75
1991 109.96
1992 126.58
1993 127.78
1994 120.23
1995 109.89
1996 107.74
1997 105.20
1998 107.17
1999 111.43
2000 109.90
2001 110.27
2002 107.65
2003 100.71
2004 96.96
2005 95.85
2006 96.15
2007 94.21
2008 97.81
2009 106.95
2010 100.00
2011 95.88
2012 97.43
2013 97.23
2014 97.32
2015 101.99
2016 102.10
2017 98.34
2018 95.58
2019 95.54
2020 95.73
2021 92.77

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