Karachi April 19 2023: The REER index was recorded at all time low level of 85.6 in March 2023 as compared to 86.4 in February 2023 improved by 80 basis points, according to data published by State Bank of Pakistan.
Interestingly, during the month of March 2023 Pak rupee appreciate 7.85 percent to close the month at 283.79, as per official data of SBP. However, Pakistan Rupee remain range bound during the month of April after this improvement on REER index.
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.