The relationship between real exchange rate and services export diversification is at the heart of this study. The analysis is performed using a sample of 125 countries over the period 1985-2014, and the two-step system Generalized Methods of Moments (GMM) approach. It shows that for both high income countries and developing countries, real exchange rate depreciations promote services export diversification and increase the total number of services export lines. These findings highlight the strong importance of real exchange policies in promoting services export diversification in high-income countries and developing countries alike.