To calculate REER index, in this study, we will use a basket of currencies including the 35 countries with the largest proportion of trade with Vietnam. Moreover, methods to determine EREER is based on previous studies, such as Edwards (1988), Elbadawi (1998), Zulfiqar and Adil (2005), Plamen and Elena (2005), Ting (2009), James ( 2010).
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