Data released by the State Bank of Pakistan (SBP) on Monday revealed that Pakistan’s Real Effective Exchange Rate (REER) rose by 1.97 percentage points to reach 104.07 in March 2024.
As per the most recent monthly data provided by the central bank, there has been a rise from 102.10 recorded in February 2024.
March 2024 marks the highest REER since April 2021, almost three years ago, when it stood at 104.2. The REER ranged between 85 and 90 during the period from February to June last year.
It is worth noting that a REER exceeding 100 signifies a decline in trade competitiveness, with exports becoming pricier and imports becoming more affordable. Conversely, a REER below 100 indicates that a country’s exports are competitive. With Pakistan’s current REER standing at 104.07, it indicates that exports yield lower returns.
