The rate of exchange between a country’s currency and a weighted combination, or a basket of other currencies, in real terms, that is, adjusted for relative consumer prices. The weights are determined by the relative trade balances between the countries. This extends the definition of the bilateral real exchange rate to a world where a country engages in trade and investment activities with two or more other countries, and reflects the overall competitiveness of the countries relative to each other. The Bank for International Settlements provides monthly data on the nominal as well as the real effective exchange rates for 61 economies, calculated as the geometric means of the respective, nominal or real, bilateral exchange rates.