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    Why is REER greater than NEER?

    Kamendra kumar 6th Dec, 2022
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    Kamendra kumar 6th Dec, 2022

    REER is greater than NEER because a rise in REER may indicate that imports are becoming less expensive while exports are becoming more exclusive and costly than imports. As a result, it can be said that an increase may signal a decline in trade competitiveness. However, REER is higher than NEER because it is calculated using the multiple of NEER.

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