This report presents recent changes in the nominal and real effective exchange rates of the euro area, of the individual EU Member States and several non-EU countries.
These quarterly reports provide data on price and cost competitiveness in the euro area and the individual Member States of the EU.
They also includes data for the United States and Japan, Switzerland, Norway, Turkey, Canada, Australia, New Zealand, Mexico, Russia, China, Brazil, Hong Kong and Korea. Aggregate measures for the European Union and the euro area are presented as well.
The NEER or, equivalently the “trade-weighted currency index”), tracks changes in the value of a given country’s currency relative to the currencies of its principal trading partners.
It is calculated as a weighted average of the bilateral exchange rates with those currencies. In the report, four alternative groups of competitor countries are considered:
Changes in cost and price competitiveness depend not only on exchange rate movements but also on cost and price trends.
The REER or, equivalently the “relative price and cost indicators”, aims to assess a country’s (or currency area’s) price or cost competitiveness relative to its principal competitors in international markets. It corresponds to the NEER deflated by selected relative price or cost deflators.
Deflators used in DG ECFIN reports are consumer price indices (CPI and HICP where available), the GDP deflator, the price deflator of exports of goods and services, and unit labour costs in the economy as a whole and in the manufacturing sector.
Double export weights are used to calculate NEERs and REERs, reflecting not only competition in the home markets of the various competitors, but also competition in export markets elsewhere.
You can download standard statistics. Differently defined nominal and real exchange rates are available upon request.
For details on the methodology, you may wish to consult the Technical Annex .