Effective exchange rate index - KIX and TCW
The exchange rate index weights together different bilateral exchange rates to create an effective (or average) exchange rate. By studying the exchange rate index, you can see how much the value of the krona has changed. A higher value in the index means that the krona has depreciated and a lower value means that the krona has appreciated. The Riksbank publishes KIX ("the krona index"). The index has 18 November 1992 as starting date, when both indices were equal to 100.
KIX ("krona index") is a geometric index, where the weights are based on total flows of processed goods and commodities for 31 countries (excluding Russia). The weights take into account exports and imports, as well as ‘third-country’ effects. The weights are updated each year, and are based on data with a time lag of several years.
The method used to calculate the weights was designed by the National Institute of Economic Research, which also calculated weights up until 2015. As of 2016, the Riksbank is responsible for calculating the weights. For more information and a description of the method used to calculate the weights, see the article by Alsterlind (2006) and the National Institute of Economic Research's website in the list of links.
The rouble is excluded from the calculation of the KIX index
Due to the low liquidity in the market and the high volatility of the SEK/RUB rate, the Riksbank ceased publishing the rouble rate as of 28 March 2022. Publication of this exchange rate will resume when it is judged that market conditions have changed. The rouble is also excluded from the calculation of the KIX index.
TCW index publication has been discontinued
The TCW index (‘total competitiveness weights’) is a geometric index and its weights are based on the average aggregate flows of processed goods for 21 countries. The weights take into account exports and imports, as well as ‘third-country’ effects. The weights, which are produced by the IMF, are based on data from 1989-91 and have not been updated since then.
The Riksbank ceased publishing the TCW index on 30 June 2021. The Riksbank recommends that the KIX index is used in all relevant contexts in which exchange rate indices occur.