Revised currency baskets 2014
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 2013. The last review was carried out in January 2014. The tables show the new baskets and the changes resulting from the review. The revised baskets will be used as of 1 January 2015 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. In 2011, Statistics Iceland began compiling data on the country distribution of Iceland’s services trade; therefore, the selection of currencies is now based on the three-year average of trade in goods and services. The main changes from the previous baskets are as follows:
Narrow merchandise (A), narrow services (C), and narrow trade basket (E):
- No change.
Broad merchandise (B), broad services (D), and broad trade basket (F)
- The Venezuelan bolivar is excluded from the baskets.
- The Indian rupee is excluded from the baskets.
- The Singapore dollar is added to the baskets.
Among other changes, Lithuania is now part of the euro area because of its accession to the European Monetary Union as of 1 January 2015. In the merchandise trade baskets, the weight of the Danish krone, the Brazil real, the Chinese yuan, and the euro has increased, while the weight of the Norwegian krone, the Russian rouble, the British pound, and the US dollar has decreased. The most significant changes in the services basket are as follows: the weight of the Singapore dollar, the Swiss franc, and the US dollar has increased, while the weight of the British pound and the other Nordic currencies has decreased. The trade baskets reflect these changes to a large degree. The weight of the Singapore dollar and the Swiss franc has increased the most, although the weight of the US dollar has increased somewhat. The weight of the British pound and the Norwegian krone has declined somewhat between years.
The tables showing the new baskets and the changes from the previous baskets can be found here:
Currency baskets 2014 (Excel file)
Currency baskets 2014 (pdf)