# How to calculate NEER and REER?

The nominal effective exchange rate (NEER) is an inflation unadjusted weighted (arithmetic or geometric) rate at which one country’s currency is exchanged for a basket of multiple foreign currencies.

The real effective exchange rate (REER) is an inflation unadjusted weighted (arithmetic or geometric) rate at which one country’s currency is exchanged for a basket of multiple foreign currencies.

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