Karachi March 21 2023: The REER index was recorded at 86.4 in February 2023 as compared to 94.0 in January 2023 improved by 760 basis points, according to data published by State Bank of Pakistan.
Interestingly, during the month of February 2023 Pak rupee appreciate 2.5 percent to close the month at 261.5, as per official data of SBP. Despite this improvement on REER index Pakistan Rupee slipped 8.6 percent during the month of March 2023.
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.
