Pakistan - Real effective exchange rate index (2010 = 100)

The value for Real effective exchange rate index (2010 = 100) in Pakistan was 100.47 as of 2021. As the graph below shows, over the past 41 years this indicator reached a maximum value of 237.50 in 1981 and a minimum value of 96.49 in 2009.

Definition: Real effective exchange rate is the nominal effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs.

Source: International Monetary Fund, International Financial Statistics.

See also:

Year Value
1980 209.31
1981 237.50
1982 217.55
1983 210.10
1984 214.57
1985 200.44
1986 165.47
1987 146.34
1988 142.51
1989 133.72
1990 126.58
1991 123.87
1992 121.59
1993 119.99
1994 119.17
1995 118.47
1996 115.29
1997 116.95
1998 118.73
1999 109.81
2000 107.90
2001 98.07
2002 101.61
2003 98.83
2004 98.03
2005 100.98
2006 103.79
2007 102.33
2008 97.39
2009 96.49
2010 100.00
2011 102.43
2012 103.81
2013 100.73
2014 107.44
2015 115.64
2016 119.35
2017 121.46
2018 107.08
2019 97.22
2020 97.60
2021 100.47

Development Relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world.

Limitations and Exceptions: Because of conceptual and data limitations, changes in real effective exchange rates should be interpreted with caution.

Statistical Concept and Methodology: The real effective exchange rate is a nominal effective exchange rate index adjusted for relative movements in national price or cost indicators of the home country, selected countries, and the euro area. A nominal effective exchange rate index is the ratio (expressed on the base 2010 = 100) of an index of a currency's period-average exchange rate to a weighted geometric average of exchange rates for currencies of selected countries and the euro area. For most high-income countries weights are derived from industrial country trade in manufactured goods. Data are compiled from the nominal effective exchange rate index and a cost indicator of relative normalized unit labor costs in manufacturing. For selected other countries the nominal effective exchange rate index is based on manufactured goods and primary products trade with partner or competitor countries. For these countries the real effective exchange rate index is the nominal index adjusted for relative changes in consumer prices; an increase represents an appreciation of the local currency.

Base Period: 2010

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Exchange rates & prices