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Revised currency baskets 2008

The weights of currencies in the baskets that are used to calculate the broad and narrow -merchandise and –trade weighted indexes have been updated. The weights are determined on the basis of Iceland’s external trade in 2007. The last review was made in December 2007. The revised baskets will be used as of December 1st, until the next annual review.

The weights are determined on the basis of the composition of Iceland’s external trade during the previous year. The aim is for the baskets to reflect as closely as possible the composition of Iceland’s external trade in both goods and services. Main changes from the previous baskets are the following.

Narrow merchandise (A) and narrow trade basket (C):

• The Russian ruble is added to the baskets.

Broad merchandise (B) and broad trade basket (D):

• The Taiwanese Dollar and the Suriname Dollar are excluded from the baskets.

The most significant other changes are that the weight of the euro increases somewhat and the weight of the US dollar diminishes. Publication of the current official exchange rate index, with a base December 31, 1991 will be discontinued at the end of 2008. The current basket of that indexed has been unchanged since July 2005.

The tables showing the new baskets and the changes from the previous baskets can be found here:
Currency baskets 2008 (Excel file)

Currency baskets 2008 (Pdf file)