Trade-Weighted Exchange Rate

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Trade-Weighted Exchange Rate

The exchange rate for a currency as adjusted against a currency basket consisting of the currencies of a country's main trading partners. This allows a currency to be judged against the currencies that it is most likely to be converted into, rather than against the market as a whole.
References in periodicals archive ?
For each industry, we construct the trade-weighted exchange rates and export-weighted foreign real GDP growth by using the trade data compiled by Feenstra, Romalis, and Schott (2002) and the exchange rate and GDP data from the International Monetary Fund.
In both cases, a negative local shock (housing bust in Mian and Sufi 2012, a rising trade-weighted exchange rate for local manufacturing industries in our study) is assumed to reduce employment in local nontradable industries through a demand channel.
For countries with $pegs (including the GCC) or linked/managed exchange rates (including Ethiopia, Egypt and Angola), it will mean some further appreciation of trade-weighted exchange rates and loss of competitiveness, potentially adding to macroeconomic imbalances.
The market's forecast for the RMB exchange rate has focused predominately on the RMB-dollar cross rate, ignoring the Chinese currency's trade-weighted exchange rates (or nominal effective exchange rate and real effective exchange rate).
Will it shift to target the RMB's trade-weighted exchange rate, or will it continue to target the RMB-U.
We therefore construct industry-specific trade-weighted exchange rates for five Asian countries for use in our empirical estimation, including one that focuses on competitors for third-country market share and not, as is traditional, on trade partners.
Morgan's indexes of real, trade-weighted exchange rates, the dollar has fallen about 19 percent since the dollar peak in February 2002; Citigroup's index places the dollar depreciation since the February 2002 peak at a smaller 14 percent.
At the national level, analyses of exchange rate moves often rely on aggregate trade-weighted exchange rates.
Effective exchange rates, commonly termed trade-weighted exchange rates, measure the average foreign exchange value of a country's currency relative to a group of other currencies.
However, between 1975 and 1980, trade-weighted exchange rates were relatively stable with respect to the U.
Second, trade-weighted exchange rates moved over a relatively wide range during the 18-year period.
Indexes of trade-weighted exchange rates are also available from the authors.