Financial Market: Real Effective Exchange Rates: CPI Based for Canada

CCRETT01CAM661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

94.55

Year-over-Year Change

-1.28%

Date Range

1/1/1970 - 6/1/2025

Summary

The Real Effective Exchange Rate (REER) for Canada measures the value of the Canadian dollar relative to a basket of other currencies, adjusted for inflation. This important economic indicator provides insights into Canada's international competitiveness and trade dynamics.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The REER for Canada tracks the purchasing power and trade-weighted value of the Canadian dollar against a portfolio of foreign currencies. It is a key metric used by economists and policymakers to assess Canada's trade position and the overall strength of the domestic economy.

Methodology

The data is calculated by the Federal Reserve based on consumer price indices and trade weights.

Historical Context

Trends in the Canadian REER inform monetary and fiscal policy decisions, as well as market analysis of Canada's economic performance.

Key Facts

  • The Canadian REER is based on the currencies of Canada's major trading partners.
  • REER values above 100 indicate the Canadian dollar is overvalued relative to its trading partners.
  • Movements in the REER impact the relative prices of Canadian exports and imports.

FAQs

Q: What does this economic trend measure?

A: The Canadian Real Effective Exchange Rate (REER) measures the purchasing power and trade-weighted value of the Canadian dollar against a basket of foreign currencies, adjusted for inflation.

Q: Why is this trend relevant for users or analysts?

A: The Canadian REER is a key indicator of the country's international competitiveness and trade dynamics, informing economic analysis and policy decisions.

Q: How is this data collected or calculated?

A: The data is calculated by the U.S. Federal Reserve based on consumer price indices and trade weights.

Q: How is this trend used in economic policy?

A: Trends in the Canadian REER provide important insights that inform monetary and fiscal policy, as well as market analysis of Canada's economic performance.

Q: Are there update delays or limitations?

A: The Canadian REER data is published regularly by the Federal Reserve with minimal delays, providing timely information to users.

Related Trends

Citation

U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: CPI Based for Canada (CCRETT01CAM661N), retrieved from FRED.