Pak Rupee’s Real Effective Exchange Rate index (REER) decreased by 2.68 percent in October, falling to a value of 108.1450 from 111.1276 in September.
According to data published by the State Bank of Pakistan, the REER index has declined by 12.48 percent compared to October 2017.
Similarly the Nominal Effective Exchange rate Index (NEER) fell by 4.71percent in October to 74.9170 from 78.6198 in September. On a yearly basis, the NEER has fallen by 16.86%
The State Bank had devalued the Rupee on Oct 09, 2018 by 7.54 percent. Since then PKR has further declined by 4.25 percent.
Since the round of ‘Market Driven adjustments’ began in Dec 2017, PKR has lost 31.75 percent of its value.
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 become cheaper and imports become more expensive; therefore, a decrease indicates a gain in trade competitiveness.
Copyright Mettis Link news