Monday, August 7, 2017

Effective Exchange Rate Indexes: July 2017 Update

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

Summary

After two months of gains, the Ringgit has reversed course, seeing declines across all six indexes. The REER is roughly where it was back in December, though the NEER managed to hold on to some gains, and is only slightly below November’s level. Overall, most of the indexes lost about -0.80% for July versus June, except for the narrow REER, which lost a little over -1.03%.

On a bilateral basis, losses were recorded against 12 out of the 15 currencies tracked. The biggest losses were against the AUD (-3.44%), the EUR (-2.85%) and the GBP (-1.73%), with the only gains recorded against the PHP (1.16%), the JPY (1.04%) and the TWD (a marginal 0.13%).

01_indexes

Changelog:

  1. Indexes have been updated to July 2017
  2. CPI deflators and forecasts have been updated for June/July 2017

3 comments:

  1. Interesting that your NEER and REER has reconverged as inflation slowed down. What do you think about REER mean reversion that some FX analysts use for valuation? -MN

    ReplyDelete
    Replies
    1. @MN

      It's a useful rule of thumb if you have nothing better. There's two weaknesses though:

      1. This assumes the exchange rate was near equilibrium during the base year

      2. It also ignores interest rate differentials, which can materially alter the picture

      Delete
  2. We Offer Loans world wide from $10,000.00 to $100,000,000.00 with 3% interest rate.Anybody interested should email back with amount needed . If you are interested in obtaining a LOAN, do not hesitate to send your request to us via e-mail: (Williamspeter199@gmail.com) or WARSUPP me at +2332604866768 or PH: +1(409) 359-2407

    ReplyDelete