Trade-weighted effective exchange rate index

2021 a Year of Record Growth for McLeod Software, New Product Release Continues their Commitment to Operations Excellence and Productivity for Customers

Retrieved on: 
Monday, January 17, 2022
IP, PNN, Broker, DFM, Negotiation, KeepTruckin, McLeod, ETA, GPS, Software, Leg, Education in Hong Kong, Movement, B. J. McLeod, Hour, Ownership, Lane, Security, MVR, Technology, Sale, Loadmaster, API, Trade-weighted effective exchange rate index, Transport, Cargo, Satellite navigation device, Online shopping, Risk management, Mobile phone

Sales growth happened in every segment the company serves, including Truckload Carriers, LTL Carriers, Brokers, 3PLs, and LSPs.

Key Points: 
  • Sales growth happened in every segment the company serves, including Truckload Carriers, LTL Carriers, Brokers, 3PLs, and LSPs.
  • MPact collects data from over 1,000 participating McLeod customers as contributors and is only available to McLeod customers using LoadMaster or PowerBroker.
  • This feature vastly reduces the effort associated with moving a load between two internal companies under the corporate structure.
  • With the release of Version 22.1, McLeod Software continues to focus on a layered security approach to protect from external cyber threats.

The ECB’s enhanced effective exchange rate measures

Retrieved on: 
Friday, September 25, 2020
Foreign exchange market, Effective exchange rate, Currency, Euro, Consumer price index, Price index, Economies, Trade-weighted effective exchange rate index

The effective exchange rate (EER) of a currency is an index of the weighted average of its bilateral exchange rates vis--vis the currencies of selected trading partners; a real EER is derived by adjusting this nominal index for relative prices or costs.

Key Points: 
  • The effective exchange rate (EER) of a currency is an index of the weighted average of its bilateral exchange rates vis--vis the currencies of selected trading partners; a real EER is derived by adjusting this nominal index for relative prices or costs.
  • [1] The weighting scheme used to aggregate the bilateral rates accounts for the relative importance of each country as a trading partner.
  • The ECB has recently enhanced the calculation of its euro EER indices to take account of the evolution of international trade linkages and, in particular, the growing importance of international trade in services.
  • [4] In addition, improved data coverage made it easier to include services trade on the basis of the established ECB methodology.
  • Chart A The evolution of overall trade weights in the euro EER-42 over time (percentages)
  • There are significant differences in the relative importance of manufacturing and services trade for the euro areas most important trading partners (see Chart B).
  • Trade in services is also much higher than manufacturing trade for the United Kingdom and the group other advanced European economies, whereas it is much lower for central and eastern European EU Member States, whose trade linkages with the euro area are to a large extent shaped by their integration in European manufacturing value chains.
  • Chart B Trade weights in the euro EER-42: manufacturing, services and combined (percentages)
  • Import and export weights are broadly similar for most countries and regions, even after correcting for competition in third markets (see Chart C).
  • Overall trade weights are calculated as (weighted) averages of export and import weights measuring the share of each country in the euro areas exports or imports respectively.
  • To take account of this effect, double export weights are used to calculate the overall trade weights.
  • While for most countries and regions the single and double export weights do not deviate much from one another, for China the difference is pronounced.
  • Chart C Trade weights in the euro EER-42: overall weights, import weights, simple export weights and double export weights (percentages)
  • With the enhanced weighting scheme, it emerges that the appreciation of the euro since the beginning of 2017 has been slightly less pronounced in nominal terms than it appeared to be based on the previous weighting scheme, primarily owing to the increased weight of advanced economies.
  • [6] Between the beginning of 2017 and the end of August 2020, the updated daily nominal EER of the euro vis--vis the EER-42 group of trading partners appreciated by 12.3%, compared with 13.8% according to the indicator based on the old manufacturing weighting scheme (see Chart D).
  • In real terms, however, developments were very consistent, with both the enhanced real EER-42 (deflated by the consumer price index) and the previously published series appreciating by just below 7% between January 2017 and August 2020 (see Chart E).
  • Chart D The evolution of the nominal euro EER based on previous and updated weights (percentage changes, 31 August 2020 relative to 2 January 2017)


Chart E The evolution of the real euro EER deflated by the consumer price index based on previous and updated weights (index; rebased to January 2017 = 100)