Pak Rupee’s Real Effective Exchange Rate Index decreases by 0.64% in September

According to data published by the State Bank of Pakistan, PKR’s Real Effective Exchange Rate (REER) Index decreased by 0.64 percent in September 2018, falling from 111.8440 in August to 111.1328 in September.

On a yearly basis, the REER index is down 8.57 percent compared to its value in September 2017.

Similarly, the Nominal Effective Exchange Rate (NEER) Index has declined by 0.16 percent compared to August 2018 and 11.88 percent compared to the same time last year.

However, the Figures for October, when released by the SBP, will show a larger decrease in the Index as the currency was devalued by 7.54 percent on October 9^th. 

According to the IMF “An increase in REER implies that exports become more expensive and imports become cheaper; therefore, an increase indicates a loss in trade competitiveness.”

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