Sterling nominal broad effective exchange rate
Sterling nominal broad effective exchange rate stood at 111.2 on Sep 22, 2026, according to Bank for International Settlements (BIS). It is one of the indicators in the Bank Rate and sterling table (Value · Daily), with a complete series running from Apr 11, 1996 to Sep 22, 2026. The complete series with an interactive chart, free to download.
This indicator in the Bank Rate and sterling table
| Indicator | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sterling exchange rates | |||||||||||
| Sterling effective exchange rate, nominal, broad basket (BIS) | |||||||||||
| US dollar per pound | 1.34 | 1.33 | 1.32 | 1.32 | 1.32 | 1.32 | 1.32 | 1.32 | 1.33 | 1.32 |
Understanding sterling nominal broad effective exchange rate
Broad external valuation of British currency across an extensive array of global trading partners forms the basis of this multilateral trade-weighted index, encompassing dozens of international currencies rather than a restricted bilateral subset. Calculations weight each foreign trading partner according to its total merchandise and service exchange intensity with the United Kingdom, thereby capturing wider geographical commercial shifts than narrow competitor groupings. This broad variant differs from restricted configurations by incorporating emerging markets and developing economies alongside traditional industrial counterparts, reflecting supply chain diversification and contemporary trade destinations. Excluded entirely are bilateral market fluctuations against individual currencies viewed in isolation, as well as inflation adjustments, because this series measures purely nominal price relationships across international borders.
Interpreting daily movements requires distinguishing genuine shifts in international trade competitiveness from temporary holiday distortions in foreign exchange markets, where regional bank closures can thin transaction volumes. Analysts should avoid comparing this broad index directly against narrow multilateral measures without accounting for the differing partner weights and currency inclusion thresholds. Long-term structural breaks can emerge when geographical trade weights are updated to reflect shifting import and export partners, altering the underlying mathematical composition of the basket. Period-on-period changes offer immediate visibility into daily market volatility, whereas multi-period moving averages provide a clearer picture of sustained external valuation shifts by filtering out high-frequency noise inherent in daily financial feeds.
Frequently asked questions
- How does the broad effective exchange rate differ from bilateral currency pairs?
- The broad index aggregates dozens of international currencies weighted by trade intensity, whereas a bilateral pair measures sterling against only a single foreign currency.
- Why might this broad index move differently than narrow trade-weighted alternatives?
- The broad basket includes emerging market economies and a larger total number of trading partners, meaning shifts in developing world currencies influence the broad measure while leaving narrow indices untouched.
- Does this index account for inflation differences between countries?
- No, this series measures nominal exchange rates only, omitting price level adjustments between the United Kingdom and its trading partners.