*Real Effective Exchange Rate* The Real Effective Exchange rate (REER) is an index of the price of a basket of goods in one country relative to the price of the same basket in that country's major trading partners, adjusted for inflation. It accounts for both the exchange rate and the relative inflation rates of the countries involved, giving a better indication of a currency's overall competitiveness in international trade. In Jan’25, the REER index of Pakistan jumped to 104.0, up from 103.7 in the preceding month.