Pakistan’s Real Effective Exchange Rate Spikes by 2.94% in January

Pakistan’s Real Effective Exchange Rate (REER) increased by 2.9 percentage points to 101.7 in January 2024. According to the latest monthly data released by the State Bank of Pakistan (SBP), the trend indicates a big jump from 98.8 recorded in December 2023. A REER above 100 indicates a loss in trade competitiveness with exports becoming more expensive and imports getting cheaper, while a REER below 100 means the country’s exports are competitive. Pakistan’s current REER value of 101.7 suggests that exports offer poor returns.