![]() The phenomenon of trading in local currencies was discussed at a high level meeting between Prime Minister of Pakistan Imran Khan, Chinese President Xi Jinping and President Tayyip Erdoğan of Turkey. The use of local currencies is expected to provide some sort of relief to the economic woes in the region of South Asia. Both of these countries have plans to abandon using the US dollar while trading with each other. Trading in Local CurrencyĪccording to a 2018 report published in Dawn Newspaper, Pakistan and China have agreed to trade in their local currencies: rupee and yuan. Be it on the state or individual level, with the help of certain measures, this rapid surge in US dollar value in Pakistan might be slowed down. Measures That Can Be Taken to Bring down the US dollar Rate in Pakistan There are certain measures that can effectively bring down US Dollar rate in Pakistanĭespite all the aforementioned factors, it’s not all doom and gloom. Just in May 2019, the dollar went up by almost PKR 10 rupees and reached an all-time high of PKR 154.2. Widening trade deficit and increasing pressure of the funds borrowed from the World Bank and the IMF are some of the main reasons why the US dollar is gaining strength against Pakistani rupee day by day, almost literally. In 2012, the US dollar reached its record high price in Pakistan’s open market as it crossed the mark of PKR 100. The surge continued in the following years. Multiple factors such as global war on terrorism, political instability in the region and decreasing imports at that time had caused the rate of dollar to go further up and in the mid 2000s it was at around PKR 60. The chart above shows you the lowest dollar price in Pakistan, over the past two decades, of around PKR 52, which was in 2000. There has been a significant surge in the value of the dollar against the Pakistani rupee over the course of the last 20 years Dollar rate in Pakistan has shown a significant increase in the last two decades It is a global currency that is used in international trade between Pakistan and rest of the world. The US dollar is one of the top performing currencies in the world. Rising Dollar Rate in Pakistan Since 2000 Have a look at the chart below showing a gradual but substantial increase in dollar rate since 2000. The rate of dollar in Pakistani market has been continually rising for the last two decades. Was the dollar price in Pakistan always above PKR 150? Of course, not. Rise of imports, decreasing remittance and, most importantly, the agreement on the terms laid down by the International Monetary Fund (IMF) are constantly devaluing the local currency against the dollar. But before you start weighing in on the subject with a colleague at the office or your workout buddy at the gym, remember that there are various factors behind the increasing dollar value against the Pakistani rupee. Talking to Xinhua, Reza Baqir, former governor of the SBP, said that depleting foreign exchange reserves of the country, along with the fall in exports and decline in remittances from overseas Pakistanis, is directly influencing the foreign reserves and eventually the value of the rupee.īaqir said that all these factors as well as the global recession is contributing to negative sentiments and uncertainty in the market, which resulted in the free fall of the local currency.The increasing US dollar rate in Pakistan has left everyone, for lack of a better word, astonished. On the last working day of the week, the local currency depreciated by 5.22 PKR, or about 1.89 per cent, against the US dollar, official figures showed. The US dollar closed at 271.36 PKR on Thursday. ![]() The Pakistani rupee (PKR) has continued a speedy crash against the US dollar with another big fall as the greenback was traded at a record high price of 276.58 PKR in the interbank market, the central bank announced.Īccording to the State Bank of Pakistan (SBP), the latest fall came during trading on Friday, reports Xinhua news agency.
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