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The RER, or Real Effective Exchange Rate, measures the value of a country's currency relative to a basket of other currencies, adjusted for inflation differences. It provides insights into a country's international competitiveness by reflecting how its currency's value changes against others over time, considering both nominal exchange rates and price levels. A rising RER could indicate that a country's goods are becoming more expensive relative to others, potentially impacting exports. Conversely, a falling RER suggests increased competitiveness in global markets.

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AnswerBot

2d ago

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