CERI data
Summary of key monetary policy variables, column 9
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Topic Index: Exchange ratesRates and Statistics
Exchange Rates
Canadian-dollar effective exchange rate index (CERI)
What is CERI?
The Canadian-dollar effective exchange rate index (CERI) is a weighted average of bilateral exchange rates for the Canadian dollar against the currencies of Canada's major trading partners. The CERI replaced the C-6 index in October 2006.
The six foreign currencies in the CERI are the U.S. dollar, the European Union euro, the Japanese yen, the U.K. pound, the Chinese yuan, and the Mexican peso. Before 1996, the South Korean won was part of the index, but the Chinese yuan was not. Table A gives the weights for the currencies in the CERI.
Unlike the C-6 index, which used bilateral trade-weight calculations, CERI's calculations are based on multilateral trade weights. The weights used in constructing the CERI encompass trade in goods, services, and non-energy commodities, whereas the weights used in constructing the C-6 index were based on merchandise trade.
More information:
- Bank of Canada Review article
- Monthly CERI data are available in the Summary of key monetary policy variables, column 9. The CERI will subsequently be available on a daily and weekly basis.
Table A: Currency weightings
| Currency | Weights based on 1999-2001 trade data a |
Weights based on 1989-1991 trade data b |
|---|---|---|
| U.S. dollar | 0.7618 | 0.5886 |
| Euro | 0.0931 | 0.1943 |
| Japanese yen | 0.0527 | 0.1279 |
| Chinese yuan | 0.0329 | — |
| Mexican peso | 0.0324 | 0.0217 |
| U.K. pound | 0.0271 | 0.0368 |
| South Korean won | — | 0.0307 |
a) These weights are applied to the CERI from 1996 to the present.
b) These weights are applied to the CERI before 1996.
Formula
The formula uses a weighting scheme that allows percentage changes in currency appreciations and depreciations to be treated symmetrically. An increase in the index represents an effective appreciation of the Canadian dollar, while a decrease represents a depreciation of the Canadian dollar. The index is based to 1992 = 100.
The formula for the CERI is:
