Eritrea | Official exchange rate (LCU per US$, period average)

Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar). Development relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world. Limitations and exceptions: Official or market exchange rates are often used to convert economic statistics in local currencies to a common currency in order to make comparisons across countries. Since market rates reflect at best the relative prices of tradable goods, the volume of goods and services that a U.S. dollar buys in the United States may not correspond to what a U.S. dollar converted to another country's currency at the official exchange rate would buy in that country, particularly when nontradable goods and services account for a significant share of a country's output. An alternative exchange rate - the purchasing power parity (PPP) conversion factor - is preferred because it reflects differences in price levels for both tradable and nontradable goods and services and therefore provides a more meaningful comparison of real output. Statistical concept and methodology: The exchange rate is the price of one currency in terms of another. Official exchange rates and exchange rate arrangements are established by governments. Other exchange rates recognized by governments include market rates, which are determined largely by legal market forces, and for countries with multiple exchange arrangements, principal rates, secondary rates, and tertiary rates.
Publisher
The World Bank
Origin
State of Eritrea
Records
63
Source
Eritrea | Official exchange rate (LCU per US$, period average)
1960 2.48669052
1961 2.48669052
1962 2.48669052
1963 2.48798333
1964 2.50220419
1965 2.50220419
1966 2.50220419
1967 2.50220419
1968 2.50220419
1969 2.50220419
1970 2.50220419
1971 2.49567343
1972 2.30202785
1973 2.10060042
1974 2.07182507
1975 2.07182507
1976 2.07182507
1977 2.07182507
1978 2.07182507
1979 2.07182507
1980 2.07182507
1981 2.07182507
1982 2.07182507
1983 2.07182507
1984 2.07182507
1985 2.07182507
1986 2.07182507
1987 2.07182507
1988 2.07182507
1989 2.07182507
1990 2.07182507
1991 2.07182507
1992 2.80497089
1993 5.00440838
1994 5.46981835
1995 6.16376298
1996 6.35727511
1997 6.75882178
1998 7.36193042
1999 8.15263333
2000 9.625
2001 11.30945208
2002 13.95819417
2003 13.87789058
2004 13.7875
2005 15.36791667
2006 15.375
2007 15.375
2008 15.375
2009 15.375
2010 15.375
2011 15.375
2012 15.375
2013 15.375
2014 15.375
2015 15.375
2016 15.35
2017 15.075
2018 15.075
2019 15.075
2020 15.075
2021 15.075
2022 15.075

Eritrea | Official exchange rate (LCU per US$, period average)

Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar). Development relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world. Limitations and exceptions: Official or market exchange rates are often used to convert economic statistics in local currencies to a common currency in order to make comparisons across countries. Since market rates reflect at best the relative prices of tradable goods, the volume of goods and services that a U.S. dollar buys in the United States may not correspond to what a U.S. dollar converted to another country's currency at the official exchange rate would buy in that country, particularly when nontradable goods and services account for a significant share of a country's output. An alternative exchange rate - the purchasing power parity (PPP) conversion factor - is preferred because it reflects differences in price levels for both tradable and nontradable goods and services and therefore provides a more meaningful comparison of real output. Statistical concept and methodology: The exchange rate is the price of one currency in terms of another. Official exchange rates and exchange rate arrangements are established by governments. Other exchange rates recognized by governments include market rates, which are determined largely by legal market forces, and for countries with multiple exchange arrangements, principal rates, secondary rates, and tertiary rates.
Publisher
The World Bank
Origin
State of Eritrea
Records
63
Source