Financial Market: Real Effective Exchange Rates: Unit Labor Costs Based for Canada

CCRETT02CAQ661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

98.94

Year-over-Year Change

-3.89%

Date Range

1/1/1970 - 4/1/2025

Summary

The Real Effective Exchange Rate for Canada, Unit Labor Costs Based, measures the value of the Canadian dollar relative to a basket of foreign currencies, adjusted for differences in unit labor costs. This indicator provides insights into Canada'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 Real Effective Exchange Rate (REER) is an economic measure that tracks the value of a country's currency against a weighted average of several foreign currencies, adjusted for inflation or other economic factors. The REER based on unit labor costs specifically accounts for changes in relative labor costs, which impact a country's export prices and competitiveness.

Methodology

The data is calculated by the U.S. Federal Reserve using trade and cost data.

Historical Context

The REER is closely monitored by policymakers and analysts to assess a country's trade position and potential exchange rate adjustments.

Key Facts

  • The REER is an important indicator of a country's international competitiveness.
  • Canada's REER based on unit labor costs has fluctuated over time, reflecting changes in its trade position.
  • Policymakers use the REER to assess the need for potential exchange rate adjustments.

FAQs

Q: What does this economic trend measure?

A: The Real Effective Exchange Rate for Canada, Unit Labor Costs Based, measures the value of the Canadian dollar relative to a basket of foreign currencies, adjusted for differences in unit labor costs.

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

A: This indicator provides insights into Canada's international competitiveness, which is crucial for policymakers and analysts assessing the country's trade position and potential exchange rate adjustments.

Q: How is this data collected or calculated?

A: The data is calculated by the U.S. Federal Reserve using trade and cost data.

Q: How is this trend used in economic policy?

A: The REER is closely monitored by policymakers and analysts to assess a country's trade position and potential exchange rate adjustments.

Q: Are there update delays or limitations?

A: The data is subject to the availability and timeliness of the underlying trade and cost data used in its calculation.

Related Trends

Citation

U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: Unit Labor Costs Based for Canada (CCRETT02CAQ661N), retrieved from FRED.