Has nominal effective exchange rate value of euro decreased

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Reference no: EM131213658

Consider an effective exchange rate value of the euro in which the Canadian dollar gets a weight of 60 percent and the Japanese yen gets a weight of 40 percent.

The nominal bilateral rates change from 2.0 euros per Canadian dollar to 1.9 euros per Canadian dollar and from 48 yen per euro to 50 yen per euro.

Has the nominal effective exchange-rate value of the euro decreased? (That is, has the euro had a nominal effective depreciation?)

Reference no: EM131213658

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