Media Release Trade-weighted Index

The Bank has revised the weights used for currencies in the trade-weighted index (TWI) for the Australian dollar, to allow for changes in the country mix of Australia's trade during 1998/99. The revisions take effect from 1 October 1999.

The composition of the TWI is determined by Australia's two-way trade with its major trading partners. Currencies sufficient to account for at least 90 per cent of aggregate trade are included. Based on 1998/99 trade figures, this requires inclusion of 20 currencies, with the Saudi Arabian riyal being added to the basket and the South African rand being removed. The new and old weights are shown in the attached table.

The new weights reflect an increase in the relative importance of Australia's trade with Europe and North America (whose combined weight has increased from 39.3 per cent to 40.5 per cent). Japan's weight has decreased from 18.7 per cent to 18.1 per cent. The combined weight of other countries in the Asian region has fallen slightly (from 40.9 per cent to 40.4 per cent).

The method for calculating the trade-weighted index is described in the Reserve Bank Bulletin of October 1988; reprints are available on request.


Mr Darren Flood
Senior Manager
International Department
Reserve Bank of Australia

Phone: (02) 9551 8402

Weights in the Trade-weighted Index
Per cent
Currency Trade Weight
Current Previous
Japanese yen 18.1324 (18.6897)
United States dollar 17.3523 (17.0484)
European euro 13.5273 (12.9513)
South Korean won 6.1411 (6.2748)
Chinese renminbi 6.0401 (5.6704)
UK pound sterling 5.9896 (5.3361)
New Zealand dollar 5.8713 (5.7965)
New Taiwan dollar 4.3130 (4.3183)
Singapore dollar 3.8268 (3.9154)
Indonesian rupiah 3.2884 (3.4717)
Malaysian ringgit 2.8257 (2.7802)
Hong Kong dollar 2.5823 (3.1949)
Thai baht 1.9278 (1.7686)
Canadian dollar 1.6953 (1.6876)
Indian rupee 1.5174 (1.5684)
PNG kina 1.0775 (1.1871)
Swedish krona 1.0432 (1.0592)
Philippine peso 0.9693 (0.9782)
Saudi Arabian riyal 0.9567
Swiss franc 0.9225 (1.2656)