Revised currency baskets 2013
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 2012. The last review was carried out in January 2012. The tables show the new baskets and the changes resulting from the review. The revised baskets will be used as of 1 January 2014 and will remain in use until the next annual review.
The weights are determined based on the composition of Iceland’s external trade during the previous year. The aim is that the baskets reflect as closely as possible the composition of Iceland’s external trade in both goods and services. In 2011, Statistics Iceland began compiling data on the country distribution of Iceland’s services trade; therefore, it is now possible for the first time to include these data in the three-year average of total external trade. As a result, the selection of currencies for the baskets will be determined henceforth by trade in both goods and services. The main changes from the previous baskets are as follows:
Narrow merchandise (A), narrow services (C), and narrow trade basket (E):
- The Saudi Arabian riyal is added to the baskets.
- The Nigerian naira is excluded from the baskets.
- The Lithuanian litas is excluded from the baskets.
Broad merchandise (B), broad services (D), and broad trade basket (F):
- The Saudi Arabian riyal is added to the baskets.
- The Venezuelan bolivar is added to the baskets.
- The Australian dollar is excluded from the baskets.
The other most significant changes in the merchandise trade baskets are as follows: the weight of the euro, the Japanese yen, the Polish złoty, and the Indian rupee has diminished, while the weight of the Norwegian krone, the Chinese yuan, and the Brazilian real has increased. The most significant changes in the services basket are as follows: the weight of the Saudi Arabian riyal, the US dollar, and the Venezuelan bolivar has increased, while the weight of the euro, the Swedish krona, the Danish krone, and the British pound has diminished. The trade baskets reflect these changes to a large degree, and the most pronounced change from the previous baskets is the reduction in the weight of the euro. The largest increase is in the weight of the Saudi Arabian riyal, although the weight of the US dollar, the Norwegian krone, and the Chinese yuan has increased as well.
The tables showing the new baskets and the changes from the previous baskets can be found here:
Currency baskets 2013 (Excel file)
Currency baskets 2013 (pdf)