Wednesday, January 10, 2018

Effective Exchange Rate Indexes: December 2017 Update

The NEER and REER page has been updated, as has the Google Docs version.


December saw the Ringgit gaining for a fourth straight month across all the indexes. The NEER hit 4.1% yoy, while the REER rose 2.1%. On the month, gains accelerated, with the Ringgit gaining 1.7% in nominal terms, and 1.5% in real terms. Gains were across the board, with appreciation recorded against all 15 currencies in the indexes, the first time that has happened since April 2016.

The largest (m-o-m) gains were against the JPY (2.33%), IDR (2.30%), HKD (2.25%) and USD (2.16%). The smallest gains were against the KRW (0.71%) and GBP (0.86%).



  1. Indexes have been updated to December 2017
  2. CPI deflators and forecasts have been updated for November/December 2017
  3. Trade weights have been updated to 3Q2017. This caused revisions to the indexes from January 2017 onwards


  1. sir can u give your comment about this?

    1. A few things:

      1. Using 2007 as the comparison year seriously biases the analysis, since it includes the borrowing to cover the revenue drop from the 2008-2009 recession;

      2. Comparing debt growth to real GDP growth is misleading. It should be compared to nominal GDP growth instead;

      3. They didn't bother to estimate nominal GDP over the same time frame as the increase in debt. The debt to GDP ratio isn't expected to change much, and is more likely to come down than to go up i.e. nominal GDP is likely to increase faster than government debt.

    2. thank for the reply sir good explanation thumbs up

  2. sir can u give your comment about this?

  3. sir can u give your comment about this?