Weights for the TWI
The new weights for the trade-weighted index (TWI) of the Australian dollar have been compiled and are reported in the table below. These weights, which reflect the composition of Australia's two-way merchandise trade in 2007/08, will apply from 1 October 2008.
| Trade Weight | ||
|---|---|---|
| Currency | 2008/09 | 2007/08 |
| Chinese renminbi | 16.3672 | 15.4486 |
| Japanese yen | 15.4040 | 15.4860 |
| European euro | 11.6517 | 12.1703 |
| United States dollar | 9.8797 | 10.7432 |
| South Korean won | 5.7786 | 5.9057 |
| Singapore dollar | 5.2102 | 4.5637 |
| United Kingdom pound sterling | 4.7535 | 4.1943 |
| New Zealand dollar | 4.6565 | 4.6553 |
| Thai baht | 3.8019 | 3.5465 |
| Malaysian ringgit | 3.2705 | 2.9989 |
| Indian rupee | 3.0844 | 3.5320 |
| New Taiwan dollar | 2.9903 | 3.2771 |
| Indonesian rupiah | 2.4053 | 2.7489 |
| Vietnamese dong | 1.9640 | 1.9032 |
| United Arab Emirates dirham | 1.5930 | 1.2801 |
| Papua New Guinea kina | 1.2341 | 1.1564 |
| Hong Kong dollar | 1.1934 | 1.3785 |
| South African rand | 1.1040 | 1.1496 |
| Canadian dollar | 1.0786 | 1.1892 |
| Saudi Arabian riyal | 0.8916 | 0.9166 |
| Swiss franc | 0.8685 | 0.9401 |
| Swedish krona | 0.8190 | 0.8158 |
The number and composition of the 22 currencies included in the index are unchanged from the previous year. These currencies account for 93.2 per cent of Australia's two-way merchandise trade.
The weight of the Chinese renminbi is now the highest in the index, having increased by 1 percentage point from last year and by 10 percentage points since 2000/01. The Japanese yen, which had received the highest weight since 1983/84, is now ranked second, though its weight is broadly unchanged from last year. The weight on the euro fell by ½ a percentage point and the weight on the US dollar fell by ¾ of a percentage point from last year.
The combined weight of the Asian-Pacific currencies, excluding Japan, increased to 52.0 per cent while the combined weights of the North American and European currencies fell to 11.0 per cent and 18.1 per cent. These declines reflect a large increase in the value of two-way trade with the Asia-Pacific region, in particular with China, rather than a decline in the value of two-way trade with Europe and North America.