Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.
Eurostat, the statistical office of the European Union
1.2. Contact organisation unit
C.1: National accounts methodology; Standards and indicators
1.3. Contact name
Restricted from publication
1.4. Contact person function
Restricted from publication
1.5. Contact mail address
2920 Luxembourg LUXEMBOURG
1.6. Contact email address
Restricted from publication
1.7. Contact phone number
Restricted from publication
1.8. Contact fax number
Restricted from publication
2.1. Metadata last certified
2 March 2023
2.2. Metadata last posted
2 March 2023
2.3. Metadata last update
2 March 2023
3.1. Data description
The collection comprises industrial countries’ effective exchange rates (EERs) produced by the European Commission (DG ECFIN). Two EERs indices, the Nominal effective exchange rate (NEER) and the Real effective exchange rate (REER), are calculated against different groups of trading partners and for different currencies.
3.2. Classification system
Data follow the DG ECFIN methodology: please check the technical annex for more information.
3.3. Coverage - sector
Not applicable.
3.4. Statistical concepts and definitions
The purpose of effective exchange rates (EERs) is to provide meaningful and comparable measures of euro area countries' price and cost competitiveness, which depend not only on exchange rate movements but also on cost and price trends. EERs are geometrically weighted averages of the bilateral exchange rates of the given currency against the currencies of the euro area’s main trading partners. A positive change in the index denotes an appreciation of the EER of the given currency.
Nominal effective exchange rate (NEER)
The nominal effective exchange rates (NEERs) of a country or currency area aim to track changes in the value of that country's currency relative to the currencies of its principal trading partners.
NEERs of the euro are geometric weighted averages of the bilateral exchange rates of the euro against the currencies of the euro area’s main trading partners. Hence, they provide a summary measure of the euro’s value vis-à-vis these currencies
Real effective exchange rate (REER)
The real effective exchange rates (REERs) aim to assess a country's (or currency area's) price or cost competitiveness relative to its principal competitors in international markets. REERs of the euro are the nominal effective exchange rates (NEERs) deflated by consumer price indices (CPIs). They are commonly used indicators of international price and cost competitiveness.
Monthly, quarterly and annual data are available for the following partners:
EA20 - 20 trading partners (euro area from 2023)
EU27- 27 trading partners (European Union from 2020)
IC37- 37 trading partners (industrial countries): EU27 + 10 industrial countries (Australia, Canada, United States, Japan, Norway, New Zealand, Mexico, Switzerland, United Kingdom and Turkey)
IC42- 42 trading partners (industrial countries): IC37 + 5 industrial countries (Russia, China, Brazil, South Korea and Hong Kong)
3.5. Statistical unit
Index 2015 = 100.
3.6. Statistical population
Industrial countries.
3.7. Reference area
European Union - 27 countries, Euro area - 20 countries (from 2023), EU Member States, United Kingdom, Norway, Switzerland, Turkey, Canada, United States, Mexico, Japan, Australia, New Zealand, Brazil, China (including Hong Kong), South Korea, Hong Kong, Russia.
3.8. Coverage - Time
Series start in 1994.
3.9. Base period
Average of 2015 = 100.
Indices.
Month, quarter, year.
6.1. Institutional Mandate - legal acts and other agreements
Use in economic analyses and forecasts of the European Commission. Inclusion of REER in the list of indicators for the Macroeconomic Imbalance Procedure (MIP).
6.2. Institutional Mandate - data sharing
Under a memorandum of understanding, the Macroeconomic Imbalance Procedure indicators are shared with the European Central Bank.
7.1. Confidentiality - policy
Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.
7.2. Confidentiality - data treatment
Not applicable.
8.1. Release calendar
Not applicable.
8.2. Release calendar access
Not applicable.
8.3. Release policy - user access
In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see item 10 - 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.
Eurostat's mission is to provide the European Union with a high-quality statistical information service (see ESS quality framework)
11.1. Quality assurance
The entire dataset is recalculated and checked every month by the DG ECFIN, as component series are frequently revised.
11.2. Quality management - assessment
Not available.
12.1. Relevance - User Needs
The NEER tracks changes in the value of acountry's currency relative to the currencies of its principal trading partners. The REER is used as competitiveness indicator. The series are used in European Commission economic analyses and forecasts. The REER is also included in the MIP indicators.
12.2. Relevance - User Satisfaction
No information available.
12.3. Completeness
The data are calculated for all the countries and areas included covering the entire time span i.e. starting 1994.
13.1. Accuracy - overall
Due to frequent updates of the basic data even historic data change frequently, ensuring accuracy over the time series.
There is no standard methodology available. As a result effective exchange rate collections can vary between different compilers: DG ECFIN, ECB, IMF and others.
13.2. Sampling error
Not applicable.
13.3. Non-sampling error
Not applicable.
14.1. Timeliness
Depending on the availability of the basic data around T+1 month after the reference period.
14.2. Punctuality
A delay may occur if basic data are not available.
15.1. Comparability - geographical
Due to use of an index with base period, caution must be used for any geographical comparison. In terms of methodology, geographical comparability is reasonable.
15.2. Comparability - over time
Although the comparability over time of the data can be considered as very high, methodological changes occur and have a limited effect on the overall pattern of REER indicators. Each time these occur, recalculations under the new definitions are performed for the whole time series, safeguarding time series without break.
15.3. Coherence - cross domain
The series should be coherent with the component data from other domains. However, there is no standard methodology for producing NEER and REER statistics.
15.4. Coherence - internal
The series should be coherent with the component data.
Not applicable: no separate collection of data is involved, only compilation and dissemination are provided.
17.1. Data revision - policy
All data disseminated consist of data already disseminated by ECFIN. The revision policy is therefore effectively the revision policy applied by ECFIN.
17.2. Data revision - practice
The revision practice effectively corresponds to the revision practice of ECFIN. Because of the nature of the data, ECFIN normally revises the data in case of error correction, which happen rarely, since errors are extremely infrequent.
18.1. Source data
The source for the effective exchange rate collection is DG ECFIN of the European Commission. Concerning component data, bilateral exchange rates for the current year are the official daily rates recorded at 14.15 hours by the ECB. Historical exchange rates are provided by the IFS (IMF) database. For the period before 1999, a weighted average of the currencies of the Member States now participating in the euro area is used as a proxy for the euro.
Weights are derived using data on bilateral exports from the IMF DoT database and on domestic production from national accounts.
The EU27 and euro-area aggregate are calculated by taking as weights each country's share of extra-EU or extra-EMU trade. Double export weights are used to calculate NEER and REER, reflecting not only competition in the home markets of the various competitors, but also competition in export markets elsewhere. Note that the series for individual euro-area countries continue beyond the establishment of the monetary union: their effective exchange rates will continue to vary because of differing trade patterns and cost or price trends.
18.6. Adjustment
None.
None.
The collection comprises industrial countries’ effective exchange rates (EERs) produced by the European Commission (DG ECFIN). Two EERs indices, the Nominal effective exchange rate (NEER) and the Real effective exchange rate (REER), are calculated against different groups of trading partners and for different currencies.
2 March 2023
The purpose of effective exchange rates (EERs) is to provide meaningful and comparable measures of euro area countries' price and cost competitiveness, which depend not only on exchange rate movements but also on cost and price trends. EERs are geometrically weighted averages of the bilateral exchange rates of the given currency against the currencies of the euro area’s main trading partners. A positive change in the index denotes an appreciation of the EER of the given currency.
Nominal effective exchange rate (NEER)
The nominal effective exchange rates (NEERs) of a country or currency area aim to track changes in the value of that country's currency relative to the currencies of its principal trading partners.
NEERs of the euro are geometric weighted averages of the bilateral exchange rates of the euro against the currencies of the euro area’s main trading partners. Hence, they provide a summary measure of the euro’s value vis-à-vis these currencies
Real effective exchange rate (REER)
The real effective exchange rates (REERs) aim to assess a country's (or currency area's) price or cost competitiveness relative to its principal competitors in international markets. REERs of the euro are the nominal effective exchange rates (NEERs) deflated by consumer price indices (CPIs). They are commonly used indicators of international price and cost competitiveness.
Monthly, quarterly and annual data are available for the following partners:
EA20 - 20 trading partners (euro area from 2023)
EU27- 27 trading partners (European Union from 2020)
IC37- 37 trading partners (industrial countries): EU27 + 10 industrial countries (Australia, Canada, United States, Japan, Norway, New Zealand, Mexico, Switzerland, United Kingdom and Turkey)
IC42- 42 trading partners (industrial countries): IC37 + 5 industrial countries (Russia, China, Brazil, South Korea and Hong Kong)
Index 2015 = 100.
Industrial countries.
European Union - 27 countries, Euro area - 20 countries (from 2023), EU Member States, United Kingdom, Norway, Switzerland, Turkey, Canada, United States, Mexico, Japan, Australia, New Zealand, Brazil, China (including Hong Kong), South Korea, Hong Kong, Russia.
Month, quarter, year.
Due to frequent updates of the basic data even historic data change frequently, ensuring accuracy over the time series.
There is no standard methodology available. As a result effective exchange rate collections can vary between different compilers: DG ECFIN, ECB, IMF and others.
Indices.
The EU27 and euro-area aggregate are calculated by taking as weights each country's share of extra-EU or extra-EMU trade. Double export weights are used to calculate NEER and REER, reflecting not only competition in the home markets of the various competitors, but also competition in export markets elsewhere. Note that the series for individual euro-area countries continue beyond the establishment of the monetary union: their effective exchange rates will continue to vary because of differing trade patterns and cost or price trends.
The source for the effective exchange rate collection is DG ECFIN of the European Commission. Concerning component data, bilateral exchange rates for the current year are the official daily rates recorded at 14.15 hours by the ECB. Historical exchange rates are provided by the IFS (IMF) database. For the period before 1999, a weighted average of the currencies of the Member States now participating in the euro area is used as a proxy for the euro.
Weights are derived using data on bilateral exports from the IMF DoT database and on domestic production from national accounts.
Depending on the availability of the basic data around T+1 month after the reference period.
Due to use of an index with base period, caution must be used for any geographical comparison. In terms of methodology, geographical comparability is reasonable.
Although the comparability over time of the data can be considered as very high, methodological changes occur and have a limited effect on the overall pattern of REER indicators. Each time these occur, recalculations under the new definitions are performed for the whole time series, safeguarding time series without break.
