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no. 140 - Banka Qendrore e Republikës së Kosovës

no. 140 - Banka Qendrore e Republikës së Kosovës

no. 140 - Banka Qendrore e Republikës së Kosovës

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April 2013Monthly Statistics BulletinTable 35. Exchange rateDescription: Exchange rate is compiled based on monthly average currencies against eurocurrency. The currencies presented belong to countries which represent the main tradepartners of Kosovo and other regional countries. For information purposes, was includedalso US dollar against euro. Real Effective Exchange Rate (REER) is calculated usingConsumer Price Index (CPI) and Harmonized Consumer Price Index (HCPI). Prior tocalculating REER Nominal Effective Exchange Rate (NEER) is calculated. NEERcalculating formula is as follows:NEER 100 E wE where represents the individual country currencies, E represents the <strong>no</strong>minal exchangerate of euro currency against other foreign currencies on monthly basis t defined as thenumber of currency units of the country i for one unit of the domestic currency. E represents <strong>no</strong>minal exchange rate of euro currency against currencies of respective countryin the base period, and w is the weight of the domestic currency .After that REER is calculated based on the following formula:REER w P NEER P where P represents the index for foreign prices on monthly basis t for each of thecountries separately comparing with the base period, whereas P represents CPI of Kosovoon monthly basis t comparing with the base period.Periodicity: MonthlySource: Kosovo Agency of Statistics, respective agencies for statistics of neighboringcountries.130 |

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