Aug 20, 2021 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) decreased by 0.39 percent in July 2021 to a provisional value of 99.42 from the revised value of 99.81 in June 2021.
According to data published by the State Bank of Pakistan (SBP), the REER index has increased by 6.79 percent compared to July 2020.
Similarly the Nominal Effective Exchange rate Index (NEER) decreased by 1.13 percent in July to a provisional value of 59.34 from the revised value of 60.02 in June. On a yearly basis, the NEER Index has increased by 1.19 percent.
PKR closed July at 162.4302 against the USD showing a depreciation of 3.01 percent compared to its value in June 2021. However, Compared to July 2020 PKR has appreciated by by 2.8 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.
