April 01, 2020 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 0.77 percent in February 2020 to a provisional value of 97.20 from the revised value of 96.46 in January 2020.
According to data published by the State Bank of Pakistan (SBP), the REER index has decreased by 0.49 percent compared to February 2019.
Similarly the Nominal Effective Exchange rate Index (NEER) increased by 1.43 percent in February to a provisional value of 63.69 from the revised value of 62.79 in January. On a yearly basis, the NEER Index has decreased by 8 percent.
PKR closed February at 154.2308 against the USD having appreciated by 0.17 percent compared to its value in January 2020. However, Compared to February 2019 PKR has depreciated by by 11.1 percent.
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.
Copyright Mettis Link News
33873
