This page shows the current position and historical range of currency valuations based on the real effective exchange rate and relative to their long-term averages. Real effective exchange rate is the value of a currency against a weighted average of foreign currencies, divided by a price deflator. A current value of zero shows that the currency valuation is at the long-term average. A value above zero shows that the currency valuation is above the long-term average and relatively expensive compared with its own history and vice versa.