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Revisions to the Calculation Method of Nominal and Real Effective Exchange Rates

April 3, 2007
Bank of Japan
Research and Statistics Department

The Research and Statistics Department has made the following revisions to the calculation method of nominal and real effective exchange rates. In response to these revisions, the "nominal and real effective exchange rates" have been retroactively revised from the commencement of the data. Please make sure to download the latest files when using this data.

(1) Currencies used for the data

At the February 2002 revision, we set a criterion for the selection of currencies to be included in the effective exchange rates as "currencies of countries or regions that have a share of no less than one percent among total Japanese exports on its destination basis in 2000."

This time, we reviewed the currencies used for the data based on the value of exports in 2005. Since there was no need to either add or abolish any currencies, the following 15 currencies will continue to be used:

US dollar / Euro / New Taiwan dollar / Korean won / Chinese yuan / Hong Kong dollar / Singapore dollar / Pound sterling / Malaysian ringgit / Thai baht / Philippines peso / Australian dollar / Indonesian rupiah / Canadian dollar / Mexican peso

(2) Euro area

With Slovenia joining the Euro from January 2007, data on the "nominal and real effective exchange rates" of the Euro area includes Slovenia from January 2007 onward.

(3) Changes in the price indices

As for the price indices used for calculating real effective exchange rates, data of the "general index excluding imports and exports" in the Wholesale Price Index (WPI) will be used for Indonesia, and the Producer Price Index (PPI) for Mexico both from 2000 onward. As a result, for the 13 countries and regions excluding Singapore and Malaysia, we will use either the PPI or the WPI for "domestic goods either for domestic demand, or for domestic demand and exports," which are considered to be the desirable price indices for deflating the exchange rates of each country and region.

(4) Figures prior to January 2000

As for Portugal and Austria from 1970-1975, the value of exports on a yen basis was calculated from the value of exports on a dollar basis in the DOTS (Direction of Trade Statistics) released by the IMF, and the dollar-yen rate in the IFS (International Financial Statistics), due to limitation of basic material. From now, however, we will release the value of exports on a yen basis calculated from the value of exports on a dollar basis in the Trade Statistics and the dollar-yen rate based on the Statistics.

For further information, contact:

Research and Statistics Department Bank of Japan

+81-3-3277-2235 (direct)