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

The value for Real effective exchange rate index (2010 = 100) in Zambia was 73.00 as of 2021. As the graph below shows, over the past 33 years this indicator reached a maximum value of 112.57 in 2008 and a minimum value of 46.98 in 1992.

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
1988 50.32
1989 65.10
1990 53.29
1991 49.21
1992 46.98
1993 53.35
1994 51.23
1995 49.18
1996 53.70
1997 62.19
1998 58.13
1999 58.22
2000 59.76
2001 68.35
2002 69.97
2003 61.93
2004 65.13
2005 80.41
2006 105.61
2007 97.61
2008 112.57
2009 95.61
2010 100.00
2011 97.16
2012 99.72
2013 102.98
2014 98.36
2015 86.64
2016 85.54
2017 94.51
2018 88.44
2019 79.59
2020 66.28
2021 73.00

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