The nominal effective exchange rate of the euro (EER)

Nominal EER: a geometric weighted average of the bilateral exchange rates of the euro against the currencies of a selection of trading partners.
Real EER: takes into account developments in relative prices between the euro area and its trading partners. It provides a measure of international price competitiveness of the euro area.

Computation: nominal and real EER indices are currently computed against:

• a group of 12 partner countries (EER-12), accounting for roughly 60% of total euro area manufacturing trade in 1999-2001,
• a broader group of 23 partner countries (EER-23), accounting for 74% of total euro area manufacturing trade in 1999-2001,
• an even broader group of 41 partner countries (EER-41), accounting for roughly 90% of total euro area manufacturing trade in 1999-2001.

A (fixed) weighting scheme is employed in these computations. The scheme is based on manufacturing trade and takes into account so-called third-market effects, i.e. competition faced by euro area products in a partner country from products of a third country. The overall trade weights underpinning the EER indices are updated every five years. The euro EER indices were first constructed in 1999 and the first update of the weights took place in 2004.

More detailed information on the methodology underpinning the computation of the euro EER indices is available in the Statistics section Daily nominal effective exchange rate of the euro / Background.