Abstract: In this article, we introduce the two effective (i.e. multilateral) exchange rates that measure the value of a specific currency in relation to an average group of major currencies: the Nominal Effective Exchange Rates (NEER) and the Real Effective Exchange Rates (REER). Both are calculated by comparing the relative trade balance of a country’s currency against each country within the index, but the REER is adjusted by the ratio of domestic price to foreign prices.
Using the BIS time-varying weights, we also look and comment the development of the CNY NEER and JPY REER over the past twenty years.
LINK ===> NEER and REER
DATA FILE ===> NEER_REER