In accordance with international standards, the National Bank of Ukraine starts releasing monthly data on the real effective exchange rate and nominal effective exchange rate indices of the hryvnia on a continuous basis. The database includes monthly data on the REER and NEER covering the period spanning from December 1999. Going forward, statistical data will be updated on a monthly basis 30 days until after the period under review.
The real effective exchange rate index of the hryvnia is an indicator of changes in price competitiveness of domestic goods relative to foreign goods produced in the countries, being Ukraine's main trading partners, both in the domestic and global markets. From an economic point of view, the essence consists in reflecting movements in the exchange rate adjusted for inflation level in Ukraine and the courtiers being Ukraine's main trading partners.
The REER index of the hryvnia is currently calculated based on the basket of 23 currencies representing 37 counties, being Ukraine's main trading partners, which is adjusted for the relative change in consumer prices. The aggregate volume of exports of goods and services used to calculate the REER of the hryvnia accounts for 85% Ukraine's foreign trade turnover in goods and services.
The methodology adopted by the Bank for International Settlements, the European Central Bank, and the International Monetary Fund (please see the Methodology for calculating the REER and NEER) lie at the core of the methodology for calculating nominal and real effective exchange rates.
"Data on the movements in the nominal effective exchange rate published in suitable format will enable research analysts to assess changes in the value of the hryvnia relative to the basket of currencies of the counties being our main trading partners, whereas data on the REER, an indicator adjusted for inflation, will enable it to compare changes in the value of consumer basket in Ukraine and abroad," said Director of the Monetary Policy and Economic Analysis Department Serhii Nikolaichuk.