Karachi May 17 2023: The REER index was recorded at 85.57 in April 2023 as compared to 85.60 in March 2023 improved by 4 basis points, according to data published by State Bank of Pakistan.
Interestingly, during the month of April 2023 Pak rupee depreciate 0.2 percent to close the month at 283.84, as per official data of SBP. Due to this improvement on REER index Pakistan Rupee gain 0.3 percent during the month of May 2023 so far.
Note: 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.