Revised currency baskets 2016
The weights of currencies in the baskets used to calculate the trade-weighted exchange rate indices have been updated. The weights are determined based on Iceland’s external trade in 2015. The last review was carried out at the beginning of 2016. The tables show the new baskets and the changes resulting from the review. The revised baskets will be used as of 1 January 2017 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 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):
• The Polish złoty is excluded from the baskets.
Broad merchandise (B), broad services (D), and broad trade basket (F):
• The Czech koruna is added to the baskets.
• The Turkish lira is added to the baskets.
• The Hungarian forint is added to the baskets.
The weight of the euro in the goods trade baskets increases markedly between years. The weight of the Chinese yuan is also increased, and the weight of the Canadian dollar increases slightly. On the other hand, the weight of the Norwegian krone, the Russian ruble, the US dollar, and the pound sterling have fallen the most. The main changes in the services trade baskets are the increased weight of the euro, US dollar, and pound sterling, while the weight of the Danish krone, Swiss franc, and Norwegian krone has declined most and the weight of the Swedish krona and the Saudi Arabian riyal has declined slightly. The trade baskets reflect these changes to a large degree. The weight of the euro, Chinese yuan, and US dollar has risen most year-on-year, while the weight of the Danish and Norwegian krone and the Russian ruble has declined.
The tables showing the new baskets and the changes from the previous baskets can be found here:
Currency baskets 2016 (Excel)
Currency baskets 2016 (PDF)