Pakistan’s Real Effective Exchange Rate (REER) Index appreciated to 91.7 in September 2023 as compared to 90.0 in August 2023, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The month-on-month increase comes to 1.86 percent, while the increase in the current fiscal year (FY24) stands at 4.55 percent. However, the REER Index has dropped by 5.91 percent in the current year.
A REER above 100 indicates a loss in trade competitiveness with exports becoming more expensive and imports getting cheaper, while a REER below 100 means the country’s exports are competitive.
It is pertinent to mention here that the Pakistani rupee has recovered from a low of 307.10 on September 5 against the US dollar to today’s interbank closing of 278.81.
The rupee’s surge saw it become the best-performing currency in the world in September, after gaining over 6 percent against the dollar.