Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Balance of trade wikipedia , lookup
Currency War of 2009–11 wikipedia , lookup
Ease of doing business index wikipedia , lookup
Financialization wikipedia , lookup
Balance of payments wikipedia , lookup
Foreign-exchange reserves wikipedia , lookup
Currency war wikipedia , lookup
International monetary systems wikipedia , lookup
Source: The ARAD time series database. Copyright(c) Czech National Bank METHODOLOGICAL SHEET REAL EFFECTIVE EXCHANGE RATE OF THE KORUNA DEFLATED BY GDP DEFLATOR I. Definition and content The real effective exchange rate of the CZK (REER) is one of the indicators of the international competitiveness of a country and is generally understood to mean various levels of relative price or costs expressed in a certain currency. In this respect, REER values above 100 signify a downward trend in the country’s competitiveness relative to the base period, whereas an REER below 100 means rising competitiveness of the country relative to the base period. For computation of the REER was used the weighted geometric average of the ratio of the nominal exchange rate index to GDP deflator differential with weights given by the shares of the nation’s largest trading partners in trade turnover. The framework of the real effective exchange rate of the koruna employs the GDP deflators of 11 countries out of eurozone plus all eurozone countries. For the calculations the eurozone countries are identified as a single currency area. The number of eurozone countries corresponds to the actual state. In the first variant, the weights relate to the overall trade turnover, whereas in the second variant the weights relate only to the turnover in SITC groups 5–8. The time series base is the average of 2010. II.Sources For the calculation of the real effective exchange rate are used as deflators GDP indices obtained for all countries from ECB statistics. GDP indices are converted into 2010 base. The nominal exchange rate indices are taken from the CNB’s own nominal effective exchange rates (NEER) calculations. III. Breakdown For both, the first and second variants, the quarterly REER index is calculated based on average of 2010 adjusted by GDP deflators. Source: The ARAD time series database. Copyright(c) Czech National Bank IV. Method of calculation Weights of monetary areas calculated by share of total trade turnover of the Czech Republic Weights of monetary areas calculated by share of total trade turnover of the Czech Republic for SITC Variant I. Monetary area 1 Euro area 2 Poland 3 United Kingdom 4 USA 5 Japan 6 Hungary 7 Switzerland 8 Sweden 9 Denmark 10 China 11 South Korea 12 Romania Total groups 5-8 Variant II. Monetary area 1 Euro area 2 Poland 3 United Kingdom 4 USA 5 Japan 6 Hungary 7 Switzerland 8 Sweden 9 Denmark 10 China 11 South Korea 12 Romania Total in % 2010 68,5 7,3 4,1 2,3 1,6 2,6 1,6 1,5 0,8 7,6 1,1 1,0 100,00 in % 2010 67,6 6,5 4,3 2,5 1,8 2,5 1,7 1,6 0,8 8,4 1,2 1,1 100,00 Formula for the calculation of the real effective exchange rate index: S REER t 100 i 1 P n * it * it wi* where Sit* - basic index of the domestic currency to the currency of the i-th trading partner in the period t Pit* - ratio of the basic GDPD Index of the i-th trading partner in the period t to the basic GDPD Index of the Czech Republic in period t, the base year being the same as for the calculation of Si* wi* - standardised weights of the currency of the i-th trading partner V. Changes in methodology and content As of March 2012 the time series base is changed to the average of 2010. Next change in the basis to the average of 2015 will be made in 2017 together with the change in weights of foreign trade used in NEER. VI. Reporting entities None.