Jul 31, 2019 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) decreased by 6.7 percent in June 2019 to a provisional value of 90.5023 from the revised value of 96.9998 in May 2019.
The State Bank of Pakistan (SBP) has revised the values for the last 4 months since IMF has revised the weights of trading partners. The rates have been recalculated since March 2019 using these revised weights.
According to data published by the State Bank of Pakistan (SBP), the REER index has decreased by 18.61 percent compared to June 2018.
Similarly the Nominal Effective Exchange rate Index (NEER) decreased by 7 percent in June to a provisional value of 63.0832 from the revised value of 67.8286 in May. On a yearly basis, the NEER Index has decreased by 20.86 percent.
PKR closed June at 160.0521 against the USD showing a depreciation of 8.2 percent compared to its value in May 2019. However, Compared to June 2018 PKR has depreciated by by 31.73 percent.
REER is a measure of the value of a currency against a weighted average of several foreign currencies, a decrease in REER implies that exports have become cheaper while imports become more expensive therefore, this decrease indicates an increase in trade competitiveness.