### Question
Can you define what real effective exchange rate means?


### Answer
**Real effective exchange rate** is defined as the following in *19 U.S.C. § 4421*:

> a weighted average of bilateral exchange rates, expressed in price-adjusted terms

#### Citation:
  - *19 U.S.C. § 4421*
  - Heading: **CHAPTER 28-TRADE FACILITATION AND TRADE ENFORCEMENT > SUBCHAPTER VI-ENGAGEMENT ON CURRENCY EXCHANGE RATE AND ECONOMIC POLICIES**

