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

CCRETT01IEM661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

103.86

Year-over-Year Change

1.20%

Date Range

1/1/1970 - 7/1/2025

Summary

The Real Effective Exchange Rate (REER) for Ireland measures the strength of the country's currency relative to its major trading partners, adjusted for differences in consumer prices. This metric is closely watched by economists and policymakers to assess Ireland's international competitiveness.

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 Ireland tracks the exchange value of the euro relative to a basket of other currencies, weighted by the importance of Ireland's trade relationships. It provides insight into how Ireland's prices and costs affect its ability to compete globally.

Methodology

The data is calculated by the Federal Reserve based on exchange rates and relative consumer price indexes.

Historical Context

Policymakers use the REER to evaluate the appropriate monetary and fiscal policies to maintain Ireland's economic stability and growth.

Key Facts

  • The base year for the REER index is 2010 = 100.
  • Ireland's REER reached a high of 108.72 in 2007 before declining after the global financial crisis.
  • REER trends are closely monitored by the European Central Bank and Irish policymakers.

FAQs

Q: What does this economic trend measure?

A: The Real Effective Exchange Rate (REER) for Ireland tracks the strength of the euro relative to a basket of other currencies, adjusted for inflation differences between Ireland and its trading partners.

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

A: The REER provides insight into Ireland's international competitiveness, which is crucial for its export-oriented economy and can inform monetary and fiscal policy decisions.

Q: How is this data collected or calculated?

A: The data is calculated by the U.S. Federal Reserve based on exchange rates and relative consumer price indexes between Ireland and its major trading partners.

Q: How is this trend used in economic policy?

A: Policymakers use the REER to evaluate the appropriate monetary and fiscal policies to maintain Ireland's economic stability and growth, such as by adjusting interest rates or public spending.

Q: Are there update delays or limitations?

A: The REER data is published monthly with a lag of approximately one month.

Related Trends

Citation

U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: CPI Based for Ireland (CCRETT01IEM661N), retrieved from FRED.