{
  "title": "New Rates from New Weights",
  "publication": "IMF Working Papers, May 1, 2005",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/index.md",
  "summary": "This paper describes the result and the methodology of updating nominal and real effective exchange rate weights on the basis of trade data over 1999-2001.",
  "publishDate": "2005-05-01",
  "series": "IMF Working Papers",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Publication date: May 1, 2005\n- This paper describes the result and the methodology of updating nominal and real effective exchange rate weights on the basis of trade data over 1999-2001.\n- The underlying framework is an updated version of the IMF's current effective exchange rate calculation, which uses weights largely based on 1989-91 data."
    },
    {
      "heading": "Methodology",
      "content": "- Effective exchange rate weights are recalculated using trade data covering 1999-2001.\n- The updated framework retains the IMF's effective exchange rate calculation approach while replacing the older weights (1989-91) with weights reflecting new trade patterns observed in 1999-2001."
    },
    {
      "heading": "Key Findings",
      "content": "- Updated weights show that the United States and developing countries (most notably China) have grown in their importance in global trade.\n- Japan and the European Union have declined in importance in global trade.\n- These changes in weights have substantial implications for:\n  - the path of the dollar,\n  - exchange rate effects of emerging market crises since 1995."
    },
    {
      "heading": "Implications and Analysis",
      "content": "- Recalculation of effective exchange rate indices based on new trade patterns is warranted because substantial changes have occurred in international trade relations since the earlier weight period (1989-91).\n- Shifts in trade-weighted importance toward the United States and developing countries imply altered real and nominal effective exchange rate dynamics and different exchange-rate transmission of shocks, including crises dating back to 1995.\n\n---\n\n Content in this bundle\n\n- wp0599 - References\n  - wp0599 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0599 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/bundle-manifest.json)",
    "Published: May 1, 2005",
    "Series: IMF Working Papers",
    "Publication date: May 1, 2005",
    "This paper describes the result and the methodology of updating nominal and real effective exchange rate weights on the basis of trade data over 1999-2001.",
    "The underlying framework is an updated version of the IMF's current effective exchange rate calculation, which uses weights largely based on 1989-91 data.",
    "Effective exchange rate weights are recalculated using trade data covering 1999-2001.",
    "The updated framework retains the IMF's effective exchange rate calculation approach while replacing the older weights (1989-91) with weights reflecting new trade patterns observed in 1999-2001.",
    "Updated weights show that the United States and developing countries (most notably China) have grown in their importance in global trade.",
    "Japan and the European Union have declined in importance in global trade.",
    "These changes in weights have substantial implications for:",
    "Recalculation of effective exchange rate indices based on new trade patterns is warranted because substantial changes have occurred in international trade relations since the earlier weight period (1989-91).",
    "Shifts in trade-weighted importance toward the United States and developing countries imply altered real and nominal effective exchange rate dynamics and different exchange-rate transmission of shocks, including crises dating back to 1995.",
    "**_wp0599 - References**"
  ],
  "related": [
    {
      "title": "_wp0599 - References",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp0599.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp0599.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp0599.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/new-rates-from-new-weights-18220/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-23T20:43:23.243Z"
}