PKR’s Real Effective Exchange Rate Index increases by 2.06 precent in February

Mar 31, 2021 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 2.06 percent in February 2021 to a provisional value of 97.12 from the revised value of 95.16 in January 2021.

According to data published by the State Bank of Pakistan (SBP), the REER index has decreased by 0.1 percent compared to February 2020.

Similarly, the Nominal Effective Exchange rate Index (NEER) increased by 0.76 percent in February to a provisional value of 58.69 from the revised value of 58.25 in January. On a yearly basis, the NEER Index has decreased by 7.85 percent.

PKR closed February at 158.1007 against the USD having appreciated by 1.25 percent compared to its value in January 2021. However, Compared to February 2020 PKR has depreciated by by 2.51 percent.

REER is a measure of the value of a currency against a weighted average of several foreign currencies, an increase in REER implies that exports become more expensive and imports become cheaper therefore, this increase indicates a decline in trade competitiveness.

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