Real Effective Exchange Rate as Based on Consumer Price Index for Malawi
MWIEREERIX • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
84.16
Year-over-Year Change
7.21%
Date Range
1/1/2000 - 1/1/2024
Summary
The Real Effective Exchange Rate as Based on Consumer Price Index for Malawi measures the strength of the Malawian kwacha relative to a basket of trading partners' currencies, adjusted for inflation. This metric is crucial for understanding Malawi's international trade competitiveness.
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 real effective exchange rate (REER) index tracks the purchasing power of a country's currency against those of its major trading partners. By incorporating both exchange rates and price levels, the REER provides a more comprehensive assessment of a nation's export and import dynamics.
Methodology
The data is calculated by the International Monetary Fund using a geometric weighted average of bilateral exchange rates adjusted for relative changes in consumer prices.
Historical Context
Economists and policymakers monitor Malawi's REER to gauge the nation's export/import balance and international trade position.
Key Facts
- Malawi's REER has declined over 40% since 2010.
- A lower REER indicates Malawian exports are more price-competitive globally.
- Monitoring the REER helps policymakers manage Malawi's trade balance.
FAQs
Q: What does this economic trend measure?
A: The Real Effective Exchange Rate as Based on Consumer Price Index for Malawi measures the purchasing power of the Malawian kwacha relative to a basket of its major trading partners' currencies, adjusted for inflation.
Q: Why is this trend relevant for users or analysts?
A: This REER metric is crucial for understanding Malawi's international trade competitiveness and the dynamics of its export and import sectors.
Q: How is this data collected or calculated?
A: The data is calculated by the International Monetary Fund using a geometric weighted average of bilateral exchange rates adjusted for relative changes in consumer prices.
Q: How is this trend used in economic policy?
A: Economists and policymakers monitor Malawi's REER to gauge the nation's export/import balance and international trade position, which informs trade and macroeconomic policies.
Q: Are there update delays or limitations?
A: The REER data may have publication lags of several months due to the time required to collect and process the underlying exchange rate and price information.
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Citation
U.S. Federal Reserve, Real Effective Exchange Rate as Based on Consumer Price Index for Malawi (MWIEREERIX), retrieved from FRED.