Pakistan’s real effective exchange rate (REER) – the country’s cost of international trade – improved to 99.85 points on the index in June, making exports viable and imports expensive mainly due to depreciation in rupee against the basket of major trading partners’ currencies.
It improved to below 100 reading on the index at the end of June 2021 after remaining above the level in the prior three successive months (Mar-May 2021), according to Pakistan’s central bank on Friday.
Export earnings remain an important source of country’s total foreign earnings. Growth in exports is a must to achieve a sustainable surge in the country’s foreign currency reserves and conveniently repay foreign debt.
