December 2008 - Note on the revision of South Africa’s nominal and real effective exchange rate indices
L Motsumi, M Oldfield, A Mokoetla, P Swart and B C de Beer
Last Modified Date:
2020-10-01, 09:30 PM
Quarterly Bulletins > Articles and Notes
The effective exchange rate indices calculated by the South African Reserve Bank (the Bank) were revised comprehensively in 1999, with a minor amendment in 2003. Subsequently, the country’s international trade patterns have changed significantly, prompted by forces such as shifts in global and domestic demand, the continued expansion and diversification of the domestic economy, the conclusion of new trade agreements and further adjustments to import duties. These developments in South Africa’s international trade patterns necessitated a reassessment of the nominal effective exchange rate and real effective exchange rate. This note briefly discusses the revisions introduced on account of the reassessment.