Pakistan’s Real Effective Exchange Rate (REER) Index fell further to a provisional value of 95.6 in October 2021 with a decline of 0.3 percent compared to 95.8 recorded in the previous month. According to a tweet as well as monthly data published by the State Bank of Pakistan (SBP) on Friday, cumulatively, REER has declined by 4.2 percent since June 2021 and 7.2 percent from its recent peak in April 2021, implying that Pakistan’s goods become more competitive in the international markets. Similarly, the index displayed a depreciation of 1.57pc percent in October 2021 against the value of 97.10 in October 2020. REER is a measure of the value of a currency against a weighted average of several foreign currencies, a decrease in REER implies that exports have become cheaper while imports become more expensive therefore, this decrease indicates an increase in trade competitiveness. Meanwhile, the Nominal Effective Exchange rate Index (NEER) decreased by 1.49pc in October 2021 to a provisional value of 55.49 from the revised value of 56.32 in September 2021. On a yearly basis, the NEER index witnessed a drop of 6.06pc from the value of 59.07 in October 2021.