What is the Trade Weighted Index (TWI)

• An index that measures the value of $NZ in relationship to a group (or “basket”) of other currencies. The currencies included are from NZ’s major export markets i.e. Australia, USA, Japan, Euro area, UK. – $A, $US, ¥, €, £.

• Each of the currencies included in the TWI is “weighted” according to how important exports to that country are ( = % of total exports)

• From the TWI we can see if the $NZ has appreciated or depreciated against our major trading partners currencies overall.