The South African Reserve Bank (SARB) compiles and periodically revises South Africa’s effective exchange rate (EER) indices to ensure that the bilateral weights of the trading-partner countries included in the calculation of the rand’s EER indices reflect changes in global trade patterns and evolving structural changes of the domestic economy. These revisions include both the nominal effective exchange rate (NEER) and the real effective exchange rate (REER). The EER measures the value of the rand against a weighted basket of currencies of South Africa’s largest trading-partner countries, while the REER adjusts the NEER for inflation differentials and indicates the relative competitiveness of domestic producers in foreign markets.