How do real exchange rates of primary commodity exporters react to changes in the relative price of these exports ? The relationship between these variables is examined using ninety-two years of Australian data. There is a significant positive correlation. However, the Australian real exchange rate does not display the downward trend that has been observed in the relative price of primary commodities. This is consisten with the hypotesis that the apparent long-run decline in the relative price of primary commodities is an artefact of inadequate quality adjusment in the price of primary commodities is an artefact of inadequate quality adjusment in the price series for manufactures.