Real Narrow Effective Exchange Rate for Canada
RNCABIS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
95.41
Year-over-Year Change
-1.84%
Date Range
1/1/1964 - 6/1/2025
Summary
The Real Narrow Effective Exchange Rate for Canada measures the purchasing power of the Canadian dollar relative to a basket of major trading partner currencies, adjusted for inflation. It's a key economic indicator used to assess Canada'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 Narrow Effective Exchange Rate for Canada tracks the value of the Canadian dollar against a weighted basket of foreign currencies, factoring in changes in domestic and foreign prices. It provides insight into Canada's international trade position and the competitiveness of Canadian exports and imports.
Methodology
The data is calculated by the Bank of Canada using trade weights and consumer price indices.
Historical Context
This trend is closely monitored by policymakers, analysts, and businesses to understand Canada's trade dynamics and economic outlook.
Key Facts
- Canada is a major trading nation, with exports and imports accounting for over 60% of GDP.
- The real exchange rate is a better measure of trade competitiveness than the nominal rate.
- A rising real exchange rate can make Canadian exports less competitive globally.
FAQs
Q: What does this economic trend measure?
A: The Real Narrow Effective Exchange Rate for Canada measures the purchasing power of the Canadian dollar relative to a basket of major trading partner currencies, adjusted for inflation.
Q: Why is this trend relevant for users or analysts?
A: This trend provides insight into Canada's international trade position and the competitiveness of Canadian exports and imports, which is a key factor for policymakers, businesses, and economists.
Q: How is this data collected or calculated?
A: The data is calculated by the Bank of Canada using trade weights and consumer price indices.
Q: How is this trend used in economic policy?
A: This trend is closely monitored by policymakers to understand Canada's trade dynamics and economic outlook, which can inform decisions on monetary and fiscal policies.
Q: Are there update delays or limitations?
A: The data is published regularly by the Bank of Canada, with minimal delays, providing timely insights into Canada's international trade competitiveness.
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Narrow Effective Exchange Rate for Canada
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Citation
U.S. Federal Reserve, Real Narrow Effective Exchange Rate for Canada (RNCABIS), retrieved from FRED.