Financial Market: Real Effective Exchange Rates: CPI Based for Portugal

CCRETT01PTA661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

99.22

Year-over-Year Change

-2.79%

Date Range

1/1/1970 - 1/1/2024

Summary

The Real Effective Exchange Rates (REER) index measures the relative value of a country's currency compared to its major trading partners, adjusted for inflation. This provides insights into a nation's international competitiveness and can inform economic and trade policy decisions.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The CPI-based REER for Portugal is an indicator of the country's price competitiveness in international markets. It tracks the purchasing power of the Portuguese currency relative to a basket of other currencies, accounting for differences in consumer price inflation between Portugal and its trading partners.

Methodology

The data is calculated by the Bank for International Settlements using exchange rates and consumer price indexes.

Historical Context

Policymakers and analysts monitor REER trends to assess a country's export and import dynamics, as well as its overall economic performance.

Key Facts

  • Portugal's REER index is currently at 94.47.
  • REER is measured on a scale where 100 represents the base year's real effective exchange rate.
  • The CPI-based REER adjusts for price level differences between Portugal and its trading partners.

FAQs

Q: What does this economic trend measure?

A: The CPI-based Real Effective Exchange Rate (REER) for Portugal measures the relative value of the Portuguese currency compared to a basket of its major trading partners, adjusting for differences in consumer price inflation.

Q: Why is this trend relevant for users or analysts?

A: The REER provides insights into Portugal's international price competitiveness, which is crucial for understanding the country's export and import dynamics, as well as its overall economic performance.

Q: How is this data collected or calculated?

A: The data is calculated by the Bank for International Settlements using exchange rates and consumer price indexes.

Q: How is this trend used in economic policy?

A: Policymakers and analysts monitor REER trends to assess a country's trade and economic conditions, which can inform decisions related to monetary, fiscal, and trade policies.

Q: Are there update delays or limitations?

A: The REER data is typically updated on a monthly basis, but there may be some delays in data availability.

Related Trends

Citation

U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: CPI Based for Portugal (CCRETT01PTA661N), retrieved from FRED.