PKR’s Real Effective Exchange Rate Index increases by 3.31 percent in August

Oct 01, 2019 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 3.31 percent in August 2019 to a provisional value of 92.71 from the revised value of 89.74 in July 2019.

According to data published by the State Bank of Pakistan (SBP), the REER index has decreased by 13.12 percent compared to August 2018.

Similarly the Nominal Effective Exchange rate Index (NEER) increased by 2.19 percent in August to a provisional value of 62.06 from the revised value of 60.73 in July. On a yearly basis, the NEER Index has decreased by 20.3 percent.

PKR closed August at 156.8577 against the USD having appreciated by 1.72 percent compared to its value in July 2019. However, Compared to August 2018 PKR has depreciated by by 26.25 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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