There seems to still be some confusion about the official exchange rate versus the real effective exchange rate… comments like “When they get to the real effective exchange rate” or When they switch to the real effective exchange rate.” Or “When they use the real effective exchange rate“…This is confusing…what a real effective exchange rate is…An official exchange rate is at which country’s currency can be exchanged for another country’s’ currency…Real Effective Exchange Rate is a broader measure that takes into account not just one bilateral exchange rate but a weighted average of a country’s currency against the basket of it’s major trading partners…Iraq already reports the effective exchange rate…It’s already there…you don’t have to wait for the real effective exchange rate to come popping up, it’s already being used…
