UK nominal effective exchange rate: broad basket
UK nominal effective exchange rate: broad basket stood at 112 in Aug 2026, according to Bank for International Settlements (BIS). It is one of the indicators in the Effective exchange rate table (Value · Monthly), with a complete series running from Jan 1994 to Aug 2026. The complete series with an interactive chart, free to download.
This indicator in the Effective exchange rate table
| Indicator | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | 11-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nominal, broad basket (64 economies) | 112 | 111.74 | 110.6 | 110.87 | 110.61 | 110.73 | 110.89 | 111.14 | 110.6 | 109.48 | |
| Real, narrow basket (27 economies) | 111.46 | 111.72 | 110.52 | 110.22 | 109.9 | 109.94 | 110.24 | 110.64 | 110.11 | 108.69 | |
| Nominal, narrow basket (27 economies) | 106.09 | 106.2 | 105.17 | 105.06 | 104.69 | 104.69 | 104.65 | 104.88 | 104.19 | 103.17 |
Understanding UK nominal effective exchange rate: broad basket
Calculated without any adjustment for international price differentials, this measure evaluates the market exchange value of the currency for the United Kingdom against sixty-four trading partners. The series aggregates bilateral exchange rates using trade weights that reflect manufactured goods and commodities transactions, without incorporating foreign or domestic inflation rates. This unadjusted design captures immediate financial market reactions to macroeconomic shocks more directly than inflation-corrected alternatives. It differs from the real effective exchange rate by isolating purely monetary valuation shifts from ongoing cost-of-living divergences between nations.
Users evaluating this series must account for high-frequency financial volatility that can obscure longer-term structural movements in currency values. Month-on-month figures often fluctuate sharply due to sudden capital market sentiment shifts, making twelve-month percentage changes a more reliable gauge of direction. Because market exchange rates are continuously recorded, preliminary monthly averages are rarely subject to substantial retrospective revisions compared to price-adjusted counterparts. Analysts must avoid using this metric to gauge export competitiveness directly, as it ignores how domestic and foreign cost structures evolve over time.
Frequently asked questions
- What is the main difference between nominal and real effective rates?
- The nominal rate tracks pure market exchange rates against trading partners, while the real rate additionally adjusts for differences in national inflation rates.
- Why are monthly averages used for this index?
- Daily market movements are averaged over the month to align with macroeconomic trade and output data releases for analytical consistency.
- Does this index include service sector trade weights?
- Trade weights are primarily constructed using merchandise trade flows due to data availability across the large cohort of partner economies.