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 July 2022, compared to the same month of the previous year, REER calculated according to the cost of living appreciated by 1.5%, while REER calculated according to the cost of the producers of industrial products depreciated by 5.1%. Such movements of REER are in conditions of increase in relative cost of living by 2.1% and decrease in relative prices of producers of industrial products by 4.5%. The nominal effective exchange rate registered an annual depreciation of 0,6%, mostly as a result of the depreciation of the Denar against the Russian ruble, US dollar and Swiss franc.  


Archive on Effective Exchange Rate (REER)

For more detailed information on the released statistical data, please contact us at  [email protected]  or+389 2 3215 181 ext.103 (or 110/108)