Friday, February 21, 2025

Pakistan’s Real Effective Exchange Rate (REER) rises again in January 2025

Pakistan’s Real Effective Exchange Rate (REER) stood at 104.05 in January 2025, as per the latest data released by the State Bank of Pakistan (SBP).

According to the central bank’s monthly report, the REER Index recorded 104.05 in January 2025, showing an increase from 103.67 in December 2024.

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REER Index
— SBP

The data reveals that the REER rose by 0.37 percent compared to the previous month, while the overall increase for the current fiscal year is 3.98 percent.

A REER above 100 signifies a decline in trade competitiveness, as it makes exports more expensive and imports cheaper. Conversely, a REER below 100 indicates that the country’s exports remain competitive in the global market.

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