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Revised currency baskets 2020

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 2019. The last review was carried out at the beginning of 2020. The tables show the new baskets and the changes resulting from the review. The revised baskets will be used as of 1 January 2021 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):
•No change in chosen currencies

Broad merchandise (B), broad services (D), and broad trade basket (F):
•No change in chosen currencies

In the goods trade basket, the weight of the Polish złoty, pound sterling, Canadian dollar, and Danish krone has increased somewhat between years. On the other hand, the weight of the Australian dollar, Chinese yuan, Norwegian krone, and Japanese yen has decreased. The most significant changes in the services basket are as follows: the weight of the euro has increased, while the weights of the Danish krone and US dollar have decreased the most, with the pound sterling decreasing as well. The trade baskets reflect these changes to a large degree. The weight of the US dollar has decreased the most between years, whereas the weight of the euro has increased.

The tables showing the new baskets and the changes from the previous baskets can be found here:

Baskets 2020

Baskets 2020