Karachi July 18 2023: The REER index was recorded at 87.7492 in June 2023 as compared to 94.8613 in June 2022 gained by 711 basis points, according to data published by State Bank of Pakistan.
Interestingly, during the fiscal year 2023 Pak rupee depreciate 29 percent to close year at 286.4, as per official data of SBP.
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.