Revised currency baskets
The weights of currencies in the baskets used to calculate the broad and narrow merchandise- and trade-weighted indices have been updated. The weights are determined based on Iceland’s external trade in 2022. The last review was carried out at the beginning of 2023. The tables show the new baskets and the changes resulting from the review. The revised baskets will be used as of 1 January 2024 and will remain in use until the next annual review.
The currency baskets are reviewed annually based on Iceland’s external trade during the prior year. The aim is that the baskets reflect as closely as possible the composition of Iceland’s external trade in goods and services. Currency selection is based on the three-year average of a country’s share in Iceland’s goods and services trade. The main changes from the previous baskets are as follows:
Narrow merchandise (A), narrow services (C), and narrow trade basket (E):
• No change in currencies
Broad merchandise (B), broad services (D), and broad trade basket (F):
• The South Korean won is added to the baskets.
• The Saudi Arabian rial is excluded from the baskets.
• The Jamaican dollar is excluded from the baskets.
• The Russian ruble is excluded from the baskets.
In the trade baskets, the weight of the Norwegian krona rises significantly between years, whereas the weight of the pound sterling declines. In the services baskets, the weight of the US dollar increases somewhat, while the weight of the Swedish krona declines. These changes are reflected in the trade baskets, where the weight of the Norwegian krone increases the most and weight of the US dollar rises somewhat. The weight of the pound sterling declines the most between years.