useful for gauging whether a currency has appreciated overall relative to trading partners. For example, in 2015 the Chinese RMB depreciated about 8% against the US dollar. However, more of China's trade is with Asia and Europe than with the United States, and the dollar appreciated against those currencies. The net effect was that once weighted by trade shares the value of the Chinese currency actually appreciated approximately 10% relative to its trading partners. EER are still volatile over short periods of time and a poor guide for comparing standards of living across countries. For that purpose Purchasing Power Parity measures are more appropriate. See also Foreign exchange market Purchasing Power Parity References External links BIS Effective Exchange Rate Home Page FRED2 Database BIS Data as graphs Lok Sang Ho, "Globalization Exports,and Effective Exchange Rate Indices," Journal of International Money and Finance, Volume 31, Issue 5, September 2012, Pages 996–1007 Global Nominal and Real Effective Exchange Rates Online Foreign exchange market