PKR’s Real Effective Exchange Rate Index decreases by 0.63 percent in May

Jun 30, 2021 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) decreased by 0.63 percent in May 2021 to a provisional value of 102.30 from the revised value of 102.95 in April 2021.

According to data published by the State Bank of Pakistan (SBP), the REER index has increased by 5.25 percent compared to May 2020.

Similarly the Nominal Effective Exchange rate Index (NEER) decreased by 0.83 percent in May to a provisional value of 61.24 from the revised value of 61.75 in April. On a yearly basis, the NEER Index has decreased by 2.05 percent.

PKR closed May at 154.3988 against the USD showing a depreciation of 0.62 percent compared to its value in April 2021. However, Compared to May 2020 PKR has appreciated by by 5.34 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.

 

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Posted on: 2021-06-30T16:15:00+05:00

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