what is the nominal effective exchange rate neer 
the nominal effective exchange rate neer is an unadjusted weighted average rate at which one country s currency exchanges for a basket of multiple foreign currencies the nominal exchange rate is the amount of domestic currency needed to purchase foreign currency in economics the neer is an indicator of a country s international competitiveness in terms of the foreign exchange forex market forex traders sometimes refer to the neer as the trade weighted currency index the neer may be adjusted to compensate for the inflation rate of the home country relative to the inflation rate of its trading partners the resulting figure is the real effective exchange rate reer unlike the relationships in a nominal exchange rate neer is not determined for each currency separately instead one individual number typically an index expresses how a domestic currency s value compares against multiple foreign currencies at once if a domestic currency increases against a basket of other currencies inside a floating exchange rate regime neer is said to appreciate if the domestic currency falls against the basket the neer depreciates 