Weights for new Trade-Weighted Index

15 December 2014

Weights for new Trade-Weighted Index

The Reserve Bank is changing the way it calculates the trade-weighted index (TWI), as previously announced in October.

As of Wednesday 17 December 2014:
• the number of currencies included in the TWI will be increased from five to 17;
• the weights for each currency will be based on the two-way trade in goods and services between the foreign country and New Zealand;
• the TWI-17 will have a base of 31 October 2014 = 76.4400, which was the level of the existing TWI-5 on that day; and

The new TWI-17 has been backdated to January 1984.

TWI-17 weights for the next 12 months are:

Technical information about the TWI is available on our website. www.rbnz.govt.nz/statistics/tables/b10/

An issue of the Reserve Bank Bulletin, scheduled for publication on Wednesday 17 December, will also include an article about the methodology used to calculate the TWI-17.

The Reserve Bank will continue to update the TWI-5 for the coming year. The TWI-5 and the weights and scaling factor used to calculate it are available on our website. www.rbnz.govt.nz/statistics/tables/b11/

ENDS

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