PKR’s Real Effective Exchange Rate Index increases by 1.03 precent in March

May 06, 2019 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 1.03 percent in March 2019 to a provisional value of 104.407 from the revised value of 103.346 in February 2019.

According to data published by the State Bank of Pakistan (SBP), the REER index has decreased by 6.54 percent compared to March 2018.

The Nominal Effective Exchange rate Index (NEER) decreased by 0.18 percent in March to a provisional value of 70.03 from the revised value of 70.157 in February. On a yearly basis, the NEER Index has decreased by 14.53 percent.

PKR closed March at 140.7806 against the USD showing a depreciation of 1.41 percent compared to its value in February 2019. However, Compared to March 2018 PKR has depreciated by by 21.89 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.

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