Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER)
Five key differences between Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER): Definition: NEER is the weighted average of exchange rates between a country’s currency and the currencies of its trading partners, with each currency weighted by its share of trade. REER, on the other hand, is an inflation-adjusted version of…