The State Bank of Pakistan (SBP) reported on Wednesday that Pakistan’s Real Effective Exchange Rate (REER) depreciated to 98.6 in September 2024. This marks a decline from the REER index of 100.1 recorded in August 2024. The latest figures indicate that the REER for September 2024 is the lowest since December 2023, when it was recorded at 98.86.

This depreciation suggests an improvement in trade competitiveness, as a REER below 100 indicates that the country’s exports are more competitive internationally.

Earlier this year, in April 2024, the REER was recorded at 104.5, the highest level since September 2018. A REER above 100 typically signifies a loss in trade competitiveness, with exports becoming more expensive and imports cheaper.

The current REER level suggests that Pakistan’s exports are now more competitively priced, potentially boosting the country’s trade performance in the global market.