May 31, 2021 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 2.46 percent in April 2021 to a provisional value of 103.30 from the revised value of 100.82 in March 2021.
According to data published by the State Bank of Pakistan (SBP), the REER index has increased by 9.4 percent compared to April 2020.
Similarly the Nominal Effective Exchange rate Index (NEER) increased by 1.93 percent in April to a provisional value of 61.75 from the revised value of 60.58 in March. On a yearly basis, the NEER Index has increased by 0.96 percent.
PKR closed April at 153.4529 against the USD showing a depreciation of 0.45 percent compared to its value in March 2021. However, Compared to April 2020 PKR has appreciated by by 4.2 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.
