How much more will PKR appreciate?

[ziaulislam]

Do we know actual figures for this
Where did the fake rupees come from, or do you mean rupees printed by SBP

when govt states it is doing "state bank lending" that means govt ask the state bank to print rupees without backing....now this is an acceptable method let say during COVID or some other catastrophe but not for the purpose of election

you are hearing Imran khan say this again and again that we haven't done a single rupee lending, here he refers to this state bank lending, otherwise we all know budget is in deficit, we are getting more loans but not through note printing

as i said the classical technique of bringing prosperity in Pakistan is this

---> decrease the interest rates, print rupees
--->gives govt opportunity to spend heavily(low interest--more money left for govt to spend, more lending more money)
--->people get excess money they HAPPY, AND SPEND THAT FAKE MONEY this will lead to fall in rupee and chaos/inflation
--->but govt counter acts that by artificially guaranteeing higher rupee by taking foreign dollar loans & throwing it in the market
--->everyone rushes to get the "free money" (its like saying i grantee a pencil[rupee in this case] will be sold at 100rs[when its real value is 10 rs]..this is done by govt buying that pencil[rupee] at higher cost in exchange for $$ taken up from foreign market).
--->economy crashes once everyone refuses to lend u anymore
--->we go to IMF begging for them to save us
---> they save us by giving us some money with painful adjustments for the crimes we did before
-->these adjustments means to now devalue the rupee to its original position(as a result of earlier note printing)
--->govt will collapse/overshoot if it does this al of sudden so this adjustment is usually stretched in 1-2 years..
---> we didn't overshoot because we got 20b from Arab countries and blew that during over first year and hence we controlled our rupee that normally would have shoot to over 200rs if Arabs didnt save us.





and the cycle continues
go oto sbp.gov.pk
look for govt borrowing from state bank of Pakistan..see trend from 2013-2020

note borrowing from schedule banks have its own down sides..it can kill the private industry but that is a separate topic
===
you know how this simple concept is so hard to comprehend for our "expert" patwaris here
(may be it will be difficult for insafians as well if IK ends up doing the same)

the day i figure that out i can write a PhD thesis on it

 

[Patriot forever]

Extremely positive news. From an economic and confidence perspective this is huge. This shows that rupee is no longer artificially manipulated and is stable.

https://twitter.com/x/status/1328999924701204481