| The nominal effective exchange rate: The geometric mean of the exchange rate of the shekel against 28 currencies, representing 38 of Israel's main trading partners, weighted by the volume of Israel's trade with those countries. |
| The real effective exchange rate: The geometric mean of the exchange rate of the shekel against 28 currencies, representing 38 of Israel's main trading partners, weighted by the volume of Israel's trade with those countries, adjusted by the differences between inflation in Israel and in those countries. |
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| A detailed explanation is presented, in Hebrew, in a paper dated June 2005 entitled "Measuring the Real Exchange rate in Israel, and its Effect on Imports and Exports". |
| For the effective exchange rate series, indices and rates of change, click here. |
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| Clarifications |
| 1. |
The exchange rate: With regard to currencies for which the Bank of Israel publishes a representative exchange rate, the rate used is the representative rate. With regard to other currencies for which no representative exchange rate is published, the exchange rate used is the rate in the international markets close to the time when the representative exchange rates are determined. |
| 2. |
The nominal effective exchange rate is published only on days when the Bank of Israel publishes representative exchange rates. |
| 3. |
On 1 January 2009 the weights relating to trade with Israel's trading partners were updated. The table below shows the old weights (used until 31 December 2008) and the new ones (used from 1 January 2009). |
| 4. |
Until 1 May 2009 the exchange rates in the international markets were used, except for the dollar, for which the representative rate was used. Thereafter the representative rate was used for all currencies for which the Bank of Israel publishes a representative rate. The change introduced in May included a retroactive adjustment of the series. |
