Monthly
This dataset tracks monthly over time.
Latest Value
0.00
Year-over-Year Change
N/A%
Date Range
3/1/1947 - 8/1/2022
Summary
The Monthly trend measures the North American Free Trade Agreement (NAFTA) Real Exchange Rate, which tracks changes in the relative value of currencies between the U.S., Canada, and Mexico. This indicator provides insight into trade competitiveness and international economic conditions.
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 NAFTA Real Exchange Rate is an index that compares the purchasing power of the U.S. dollar, Canadian dollar, and Mexican peso. It is used by economists and policymakers to assess the relative costs of goods and services across North America, which influences trade flows and investment decisions.
Methodology
The data is calculated based on official exchange rates and inflation rates reported by the central banks of each NAFTA country.
Historical Context
The NAFTA Real Exchange Rate is monitored by trade officials, multinational corporations, and international investors to gauge the competitiveness of North American exports and imports.
Key Facts
- The base year for the NAFTA Real Exchange Rate index is 2010 = 100.
- Mexico has the largest weight in the index at around 60%.
- The rate measures changes in relative purchasing power, not just exchange rates.
FAQs
Q: What does this economic trend measure?
A: The NAFTA Real Exchange Rate tracks changes in the relative purchasing power of the U.S. dollar, Canadian dollar, and Mexican peso. It provides insight into the competitiveness of North American trade.
Q: Why is this trend relevant for users or analysts?
A: The NAFTA Real Exchange Rate is an important indicator for assessing trade conditions and economic performance across North America. It informs decision-making by governments, businesses, and investors.
Q: How is this data collected or calculated?
A: The data is calculated based on official exchange rates and inflation rates reported by the central banks of the U.S., Canada, and Mexico.
Q: How is this trend used in economic policy?
A: Policymakers and trade officials monitor the NAFTA Real Exchange Rate to gauge the competitiveness of North American exports and imports, which influences trade policies and investment decisions.
Q: Are there update delays or limitations?
A: The NAFTA Real Exchange Rate data is published monthly with a short lag, providing timely insight into evolving economic conditions across North America.
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Similar NAFTAREC Trends
Citation
U.S. Federal Reserve, NAFTA Real Exchange Rate (NAFTAREC), retrieved from FRED.