Net secondary income linked to exchange rates
Comparing Net secondary income (Net current transfers from abroad) (current LCU) with Exchange rate, old LCU per USD extended forward, period average across 172 countries, 2024–2026.
- Rank correlation
- +0.59
- Holding size constant
- +0.48
- Countries compared
- 172
- Period
- 2024–2026
What might link these
The relationship between net secondary income and exchange rates might be driven by remittances, which can influence both indicators. A careful reader should consider the potential impact of trade policies as a confounder. The correlation could be due to various economic factors, not just a direct link between the two indicators.
Why this is not proof of anything
This is a correlation across countries, not an experiment. It cannot show that either indicator causes the other, and both may simply follow a third thing. This correlation could mislead by suggesting a direct causal link, when in fact it may be driven by underlying economic conditions or other factors.
The second figure above repeats the measurement with national population and income held constant. It is the more conservative number: a relationship that largely disappears there was mostly telling you that larger, richer countries have more of most things.
How this was measured
Both indicators were ranked across every country reporting each, and the two rankings compared — ranks rather than raw values, because a handful of very large countries can otherwise manufacture a relationship on their own. The calculation is arithmetic over figures already published on this site; the commentary above is drafted from the two indicator names and the resulting coefficients.