Effective Exchange Rate Indexes: December 2016 Update

The NEER and REER page has been updated. For convenience, I’ve added a Google Docs version of the data (link at the bottom of the table).

Summary

Both the NEER and REER continued to decline in December, by 1.2% and 1.5% respectively. I haven’t extended either index before 2000, as the introduction of the Euro in 1999 makes it hideously complicated to do so, but December marks the lowest levels for either index as far as the data goes back.

Just as in November, the decline was broad-based, with the biggest drops recorded against the CNY and the USD (both -0.3%). The Ringgit however continued to climb against the JPY, up 0.35% for the month.

Changelog:

1. Indexes have been updated to December 2016
2. CPI deflators and forecasts have been updated for November/December 2016
3. Korea has rebased their CPI to 2015, which resulted in some revisions to the broad indexes