March 29, 2019 (MLN): Rupee’s Real Effective Exchange Rate index (REER) increased by 0.14% in February 2019, inching up to a provisional value of 103.3124 from the revised value 103.1728 in January 2019.

According to data published by the State Bank of Pakistan (SBP), the REER index has declined by 8.8 percent compared to February 2018.

Similarly the Nominal Effective Exchange rate Index (NEER) fell by 0.07 percent in February to 70.1573 (provisional) from 70.2073 (revised) in January. On a yearly basis, the NEER has fallen by 15.76 percent.

PKR closed February at 138.8201 against the USD, showing a depreciation of 0.43% compared to its value in January 2019.

REER is a measure of the value of a currency against a weighted average of several foreign currencies, an increase in REER implies that exports become more expensive and imports become cheaper therefore, this increase indicates a decline in trade competitiveness.

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