Pakistan's REER Peaks at 104.4 in April 2024

The Real Effective Exchange Rate (REER) is a measure of a country's currency value against a basket of other major currencies, adjusted for inflation. In April 2024, the REER for Pakistan reached a peak of 104.4, according to data released by the State Bank of Pakistan (SBP). This indicates that the Pakistani Rupee was relatively stronger compared to other currencies during that period.

Despite the REER reaching a record high, the local currency, the Pakistani Rupee, maintained stability against the US dollar in May. The exchange rate remained steady at Rs278-278.60 per US dollar, the same level as in April. This stability suggests that while the REER was high, the Rupee's value against the US dollar remained consistent.

The increase in the Real Effective Exchange Rate (REER) for Pakistan in April 2024 reflects a strengthening of the Pakistani Rupee relative to other major currencies. This stability against the US dollar indicates a balanced foreign exchange market. It is important for investors and policymakers to monitor these exchange rate movements to understand the country's economic health and competitiveness in the global market.