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What is the difference between REER and NEER?

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Anonymous

 ∙ 12y ago
Updated: 9/28/2023

NEER Stands for Nominal Effective Exchange Rate and REER stands for Real Efective Exchange Rate.NEER is depends on GDP(GDP weighted NEER is more appropriate) and Trade values.

REER adjusts NEER by appropriate foreign price level and deflates by the home country price level.

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 ∙ 12y ago

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Difference between REER and NEER?

Nominal effective exchange rate (NEER) and Real effective exchange rate (REER)

What is NEER in exchange rate?

NEER is Nominal Effective Exchange Rate.It is a measure of average effective relative strengt of a currency with respect to other currencies without reducing the effect of price change

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What is REER in exchange rate?

The real effective exchange rate based on real exchange instead of nominal exchange rate in foreign currency exchange.

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