The role of foreign currencies in BLS import and export price indexes

This article provides a snapshot of the currencies reported by U.S. establishments that participate in the MXPI survey and explains how currency exchange rates affect prices and price indexes. Companies face unique challenges when they decide to partner with foreign businesses to produce and sell their products. One of those challenges is answering the question, “With what currency should we conduct our trade?” Although the U.S. dollar is considered the world’s foremost trade-invoicing currency, U.S. firms do occasionally contract in a foreign currency when they import or export merchandise goods.1 The U.S. Import and Export Price Indexes (MXPI) track the average change in prices of such transactions and will accept pricing data invoiced in foreign currencies, although the prices are first converted to U.S. dollars in order to incorporate them into the price indexes’ calculations. This article provides a snapshot of the currencies reported by U.S.