Pakistan’s Real Effective Exchange Rate Hits 3-Year High of 104.07 in March 2024

Pakistan's Real Effective Exchange Rate (REER) increased by 1.97 percentage points to 104.07 in March 2024, according to data released by the State Bank of Pakistan (SBP) on Monday. According to the latest monthly data released by the central bank, the trend indicates an increase from 102.10 recorded in February 2024. March 2024's REER is the highest since April 2021 (just a month shy of 3 years) when it was recorded at 104.2. The REER was between 85 and 90 during February-June period last year. It is pertinent to mention here that 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. Pakistan's current REER value of 104.07 suggests that exports offer poor returns. Source: Pro Pakistani