Real effective exchange rate (REER)
REER = Real Effective Exchange Rate- How often
- Every monthMonthly, in the RBI Bulletin
- Last released
- 23 Oct 2026Sep 2026
September 2026, up from 91.96 in August 2026.
Events on this chart
Source: RBI, released 23 Oct 2026 · Chart: Clarity UPSC
- Previous
- 91.96Aug 2026
- Highest
- 97.31Sep 2025
- Lowest
- 91.96Aug 2026
3 readings since Sep 2025.
Story
The rupee against a basket of 40 currencies, adjusted for inflation. Above 100 means the rupee is dearer than in 2015-16.
What is happening now As of Sep 2026
The 40-currency Real Effective Exchange Rate (REER) was 92.24 in September 2026, slightly up from 91.96 in August but well below 97.31 in September 2025, the Reserve Bank of India (RBI) reports. It averaged 97.44 in 2025-26 and 105.41 in 2024-25. A reading below 100 means that, after allowing for prices, the rupee is cheaper than in 2015-16.
The fall over the year came from weaker exchange rates: the Nominal Effective Exchange Rate (NEER) dropped from 84.49 to 78.10, and higher inflation in India than abroad offset part of it. The RBI says the rupee rose in real terms in September because inflation in India was higher than in its main trading partners and the rupee gained slightly in nominal terms.
Why it matters
The Real Effective Exchange Rate (REER) shows whether Indian goods are getting cheaper or dearer for foreign buyers once both exchange rates and prices are counted. If the rupee holds steady but prices in India rise faster than abroad, Indian goods still become dearer, and the index rises.
Exporters, the government and the Reserve Bank of India (RBI) use it to judge whether the rupee is overvalued or undervalued against India's trading partners. A high reading makes exports harder to sell and imports cheaper; a low one helps exporters but raises the cost of imports.
What it is
The Real Effective Exchange Rate (REER) measures the rupee against the currencies of India's trading partners, adjusted for differences in inflation. The main index of the Reserve Bank of India (RBI) uses 40 currencies, each weighted by its share in India's trade, with 2015-16 = 100.
The RBI first computes the Nominal Effective Exchange Rate (NEER), a weighted average of the rupee's exchange rates. The REER then adjusts the NEER for the ratio of Indian to foreign prices, using consumer price indices. Both appear every month in the RBI Bulletin.
A rise means the rupee has appreciated in real terms: Indian goods have become dearer for foreign buyers. A fall makes them cheaper, which helps exports. The Economic Survey 2025-26 finds that a weaker rupee improves India's balance of trade in goods.
Read this number
- The publisher
- The Reserve Bank of India is India's central bank. It manages money supply, bank regulation, the rupee and the country's foreign exchange reserves.
Terms on this page (2)
- NEER
- Nominal Effective Exchange Rate
- RBI
- Reserve Bank of India
History
- Apr 2014The Reserve Bank of India (RBI) begins publishing Real Effective Exchange Rate (REER) indices based on consumer prices, for 6- and 36-currency baskets.
- 21 Jan 2021New series: the base year moves from 2004-05 to 2015-16, and the basket grows from 36 to 40 currencies, covering 88% of India's trade instead of 84%.
- 2024-25The 40-currency REER averages 105.41, about 5% above its 2015-16 level.
- 2025-26The REER averages 97.44, below its 2015-16 level.
Readings
| Period | Value | Status | Released |
|---|---|---|---|
| Sep 2026 | 92.24 | Provisional | 23 Oct 2026 |
| Aug 2026 | 91.96 | Provisional | 23 Oct 2026 |
| Sep 2025 | 97.31 | Provisional | 23 Oct 2026 |
For UPSC
Know the difference between the Nominal Effective Exchange Rate (NEER) and the Real Effective Exchange Rate (REER), that a rise in either index means the rupee has appreciated (the opposite of the rupee-per-dollar rate), and the 40-currency basket of the Reserve Bank of India (RBI), with base 2015-16.