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 ?
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.
7) We also construct three additional industry-specific trade-weighted exchange rates following Goldberg (2004):
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.
Under the global payments approach, China is a prime candidate for significant real currency appreciation: it has experienced massive reserve accumulation equal to 10 percent of GDP over each of the past three years; its real, trade-weighted exchange rate has depreciated over this period; and it has now recorded 10 successive quarters of 9 percent plus economic growth.
At the national level, analyses of exchange rate moves often rely on aggregate trade-weighted exchange rates.
At the national level, discussions of exchange rate movements often rely on aggregate trade-weighted exchange rates, such as the carefully constructed measures computed by the Board of Governors of the Federal Reserve System for the aggregate economy.
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.
For this reason, effective exchange rates are frequently termed trade-weighted exchange rates.
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.