August 24, 2022 (MLN): The Real Effective Exchange Rate (REER) index was recorded at 93.16 in July 2022, showing a drop of 0.87% compared to 93.97 in June 2022, the latest monthly data published by the State Bank of Pakistan (SBP) showed on Wednesday.

On a year-on-year basis, the index fell by 6.4% against the value of 99.56 in July 2021.

It is pertinent to mention that the REER moved down by 9.5% from its peak of 102.95 in April 2021.

REER is a measure of the value of a currency against a weighted average of several foreign currencies. A decrease in REER implies that exports have become cheaper while imports become more expensive therefore, this fall indicates an increase in trade competitiveness.

Meanwhile, the Nominal Effective Exchange rate Index (NEER) decreased by 4.53% in July 2022 to a provisional value of 47.26 from 59.51 in June 2022. On a yearly basis, the NEER index witnessed a drop of 20.35% from the value of 59.34 in July 2021.

Copyright Mettis Link News

Posted on:2022-08-24T17:15:51+05:00

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