Karachi May 2 2022: The Real Effective Exchange Rate (REE) index was recorded at 96.84 in March 22 as compared to 97.82 in February 2022, according to data published by State Bank of Pakistan.
A REER index of 100 should not be misinterpreted as denoting the equilibrium value of the currency. 100 merely represents the value of the currency at a chosen point in time (in this case the average value of the currency in 2010). Therefore, movement of the REER away from 100 simply reflects changes relative to its average value in 2010 and is unrelated to its equilibrium value.
Source:
State Bank of Pakistan
