The purpose of the effective exchange rates is to provide important and comparable measures for price and cost competitiveness between countries. Еffective exchange rates are based on weighted geometric averages of bilateral exchange rates of the currency of one country against the currencies of a selection of trading partners. With correction for the relative movements of the national price or cost indicators (domestic economy and foreign economies - trading partners) the real effective exchange rate is calculated. The NBRNM calculates REER based on the following price indicators (deflators): consumer price indices, producer price indices and unit labour cost indices.

The increase in the index of the real effective exchange rate of the Denar is interpreted as an appreciation of the domestic currency and reduced price competitiveness, while the decrease of the index indicate depreciation and a corresponding increase in the competitiveness.



Latest developments:


In November 2019, compared to the same month of the previous year, price competitiveness indicators of the Macedonian economy registered divergent movements. Namely, REER deflated by consumer prices depreciated by 3%, while REER deflated by producer prices appreciated by 0,3%, amid different achievements on relative price, decrease in the relative consumer prices by 2%, and increase in the relative producer prices by 1,3%. 

        The nominal effective exchange rate created downward pressure, registering an annual depreciation of 1% mostly as a result of the depreciation of the denar against the Swiss franc and British pound.











Archive on Effective Exchange Rate (REER)


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