FRED currently has more than 822,000 data series, and you can leverage this wealth of information to create new data. For example, you can reasonably approximate the value of the exchange rate between the Swedish krona and the euro by using two different, yet related, data series.
The FRED graph above uses quarterly exchange rate data from the Organisation for Economic Co-operation and Development. We start with the exchange rate between the Swedish krona relative to the US dollar. Next, we customize the data by adding a second series to Line 1 in the graph: the exchange rate between the US dollar and the euro. Last, we combine both series by applying the formula a/b, which stands for the transformation krona per dollar / euro per dollar.
The resulting series is a very close approximation of the quarterly average exchange rate between the Swedish krona and the euro reported by the Central Bank of Sweden. Låt oss fundera med FRED®!
Coda: Coincidentally, you can create that very same data approximation by using data about Sweden’s GDP reported by Eurostat, the European Union’s statistical authority. The quarterly GDP figures available in FRED are reported both in the domestic currency (the krona) and in the currency of the Eurozone (the euro). We customized the data by applying this formula: GDP measured in krona / GDP measured in euros. You can see the result side by side with our earlier work here.
How this graph was created: Search FRED for and select “National Currency to US Dollar Exchange Rate: Average of Daily Rates for Sweden.” From the “Edit Graph” panel, use the “Edit Line 1” tab to customize the data by searching for and selecting “Currency Conversions: US$ Exchange Rate: Average of Daily Rates: National Currency:usd for the Euro Area (19 Countries).” Next, create a custom formula to combine the series by typing in a/b and clicking “Apply.”
Suggested by Diego Mendez-Carbajo.