Social and Behavioral Sciences Commons^™

Computation Of The Real Effective Exchange Rate (Reer) Using The Bank For International Settlement (Bis) Methodology, M. Nakorji, E. A. Udeaja, F. U. Ismail, S. T. Zimboh, T. O. Obiezue, O. C. Asuzu

Economic and Financial Review

The importance of REER and its computation prompted this study to re-estimate the REER for Nigeria, using the Bank for International Settlement (BIS) methodology. The methodology incorporates recent developments in global trade by employing timevarying trade weighting patterns, highlights the effect of third market competitors, and provides a more comprehensive approach to capturing the effects of bilateral exchange rates through the inclusion of double export weights. The method employed the weighing scheme adopted by Turner and Van’t dack (1993) which has its theoretical underpinnings in Armington (1969). The data utilised was monthly series from October 2011 to December 2016 with …