nominal effective exchange rate

The nominal effective exchange rate (NEER) is a measure that reflects the value of a country's currency compared to a basket of other currencies, weighted by trade volume. It indicates how competitive a country's currency is internationally. If the NEER rises, the currency is stronger overall, making exports more expensive and imports cheaper. Conversely, if it falls, the currency weakens, potentially boosting exports. Essentially, NEER summarizes the overall strength of a currency in global trade, helping policymakers and investors assess the country's relative economic position.