Consider the following statements regarding Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER):

1. NEER is a weighted average of a country’s exchange rates with its trading partners, adjusted for inflation differences.

2. An increase in REER indicates that the country’s exports are becoming less competitive.

3. A REER value greater than 100 suggests that the currency is overvalued, making imports cheaper and exports costlier.

How many of the above statements are correct?