Pakistan’s Real Effective Exchange Rate (REER) increased to 103.7 in December 2024, according to the latest data released by the State Bank of Pakistan (SBP). This marks a slight rise from November 2024, when the REER stood at 103.02.

December’s REER reading is the highest in eight months, with the last peak recorded in April 2024 at 104.4. The REER index measures a country’s trade competitiveness by comparing its currency value against a basket of currencies, adjusted for inflation.

A REER above 100 indicates a loss in trade competitiveness, as it makes exports more expensive and imports cheaper. Conversely, a REER below 100 suggests that a country’s exports are competitive in the global market.

The increase in REER could signal challenges for Pakistan’s export sector, as higher values may reduce the competitiveness of locally produced goods in international markets.