Download ANNOUNCEMENT REGARDING THE REVISIONS IN REAL EFFECTIVE EXCHANGE RATE DATA

Statistics Department
ANNOUNCEMENT REGARDING THE REVISIONS IN REAL
EFFECTIVE EXCHANGE RATE DATA
In accordance with the announcement made on February 26, 2016,
Country coverage and weights used in the Real Effective Exchange Rate (RER) index
which is published monthly under the Official Statistics Program was updated in April
2015, by applying BIS and ECB methodologies. Accordingly, weights of countries in
the index for three-year averages starting from 2003 (2003-2005, 2006-2008, 20092011) was calculated using bilateral trade between countries with the doubleweighting approach and then each period was chain-linked. However, international
trade data (UN COMTRADE Database) and GDP data (United Nations National
Accounts Database) for 2012-2014 period was not available at the time of the study.
Therefore, the weights of 2009-2011 period were used for 2012 and subsequent
periods.
Since United Nations data is available for 2012-2014 as of 2016, country weights for
this period were calculated and applied for 2012 and subsequent years. Therefore,
there have been revisions in published indices after the year 2012.
Moreover, due to failure to receive Libya’s CPI data since June 2014, Libya has been
removed from the CPI based RER after the year 2012.
Developing European Union (EU) countries, namely Poland, Bulgaria, Romania and
Hungary, are removed from the current Unit Labor Cost (ULC) Based RER index
calculated with 19 EU countries and USA due to data constraints. The current index
has been replaced with newly calculated “ULC – Developed Countries Based RER”.
Real effective exchange rate data published on 4th of March 2016 covered above
mentioned updates.