The price of the Pakistani rupee fell by Rs 11 in a single day, at the lowest level ever, Pakistan’s economy became ‘Dhadam’
Pakistan Rupee at the lowest level: Compared to the previous day, the rupee has come down by 6 points, which was trading at 255 in the international market on Thursday. According to media reports, the IMF had asked the Pak government to end its control and allow market forces to determine the currency rate.
Pakistan’s currency has come down to a record low of Rs 261 against the US dollar. (File photo-AFP)
- Pakistan currency falls to a record low of Rs 261 against the US dollar
- The fall came after the government loosened its grip on the exchange rate to receive the bailout package.
Islamabad. In Pakistan, which is facing a financial crisis, the price of the Dollar has reached a record level against the Pakistani Rupee. According to a report by Pakistani TV channel Geo TV, Pakistan’s currency fell to a record low of Rs 261 against the US dollar on Friday. The fall comes after the government loosened its grip on the exchange rate to get the much-needed bailout package from the International Monetary Fund (IMF).
Significantly, compared to the previous day, the rupee has come down by 6 points, which was trading at 255 in the international market on Thursday. According to media reports, the IMF had asked the Pak government to end its control and allow market forces to determine the currency rate. This extremely difficult condition was easily accepted by Pakistan, which was going through an economic crisis. Let us tell you that Pakistan is trying to get the approval of the global body to get funding of $ 6.5 billion, which is currently stalled.
At the same time, Pakistan is also facing a huge shortage of dollars. The neighboring country has less than $5 billion in reserves, which is hardly enough to finance its three weeks’ imports. According to the report, the government of Pakistan should bring a new policy to stop the heavy expenditure on luxury cars or other goods, but here the government also seems to be failing completely.
Pakistan currency falls to a record low of Rs 261 against the US dollar
The value of a country’s currency can fluctuate based on a variety of factors, including economic conditions, interest rates, and political stability. A weaker currency can make exports cheaper and attract foreign investment, but it can also lead to inflation and make imported goods more expensive. It’s important to note that currency exchange rates are constantly fluctuating, so the value of the Pakistani rupee in relation to the US dollar may change over time.
The fall of Pakistan’s currency, the Pakistani rupee, to a record low of Rs 261 against the US dollar is a significant development. This depreciation can have a significant impact on the economy of Pakistan, making imports more expensive and reducing the purchasing power of the citizens. The reasons for such depreciation could be due to a combination of factors such as high inflation, political instability, and a widening trade deficit. The government of Pakistan and the State Bank of Pakistan may take steps to stabilize the currency, such as increasing interest rates or seeking support from international financial institutions.
Some other points to consider about the fall of the Pakistani rupee to a record low against the US dollar:
- It can increase the cost of servicing foreign debt, as Pakistan’s debt is primarily denominated in foreign currency.
- It can lead to an increase in the cost of living, as many essential goods are imported.
- It can make Pakistani exports less competitive in international markets, which can negatively impact the country’s export-oriented industries and overall economic growth.
- It can lead to uncertainty and volatility in financial markets, as investors may become hesitant to invest in the country due to the perceived risk.
- The government may take steps to try and stabilize the currency, such as imposing capital controls or seeking financial assistance from international organizations. However, these measures can also have negative consequences, such as limiting economic growth and impeding foreign investment.
- The Central bank of Pakistan may also intervene in the foreign exchange market to try to prop up the value of the rupee, but this can be costly and may not be a sustainable solution.