Economy, asked by Kinx3913, 1 year ago

What is the difference between nominal effective exchange rate and real effective exchange rate

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Answered by dishaa85

1

Answer:

Nominal Effective Exchange Rate is the weighted average of bilateral nominal exchange rates of the home currency in terms of foreign currencies. ... Real Effective Exchange Rate (REER) is the weighted average of nominal exchange rates, adjusted for inflation. REER is calculated on the basis of NEER.

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