Apr 29, 2021 (MLN): Pak Rupee's Real Effective Exchange Rate Index (REER) increased by 3.37 percent in March 2021 to a provisional value of 100.50 from the revised value of 97.22 in February 2021.
According to data published by the State Bank of Pakistan (SBP), the REER index has increased by 3.45 percent compared to March 2020.
Similarly the Nominal Effective Exchange rate Index (NEER) increased by 3.22 percent in March to a provisional value of 60.58 from the revised value of 58.69 in February. On a yearly basis, the NEER Index has decreased by 3.04 percent.
PKR closed March at 152.7586 against the USD having appreciated by 3.38 percent compared to its value in February 2021. Similarly, Compared to March 2020 PKR has appreciated by 8.37 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.
