This post is motivated by recent headlines suggesting that the Chinese yuan has depreciated in recent days. Here’s an example:
China’s yuan weakens to 5-1/2 low as c.bank tolerates depreciation
This headline is completely inaccurate – the Chinese yuan has been appreciating in recent days. So that’s one problem I’d like to fix. I’d like to see the media start reporting accurate data on exchange rates, so that we know what is actually happening to them. Not inaccurate information, which leads to bad public policy decisions.

Another problem with the reporting of exchange rates is that it’s often done in a very confusing table, where sometimes a bigger number means the exchange rate has appreciated, and sometimes a bigger number means depreciation. Most of us now know that a bigger number means a weaker yen and a stronger euro, but who can keep straight the Canadian and Australian dollar, which are also not reported in a consistent fashion? I also get confused by exchange rates that are very close to one, like the Swiss franc:

Click to enlarge.

My proposal would solve both of these problems in one fell swoop. I propose that Bloomberg, or some similar company, create a table of currency indices.

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