TigerOfMysore
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Balance is not the issue. Try transferring that money aboard. Or try to withdraw in Dollars. You'll get the answer. Balance on a dashboard means nothing. Try withdrawing the money and you'll see the reality.My Pkr RDA shows same balance as few months ago. No changes.
Its fine.
Even my local pkr account is ok, nothing bad.
Whats with the fearmongering and sensationalism ???
Balance on an account dashboard does not mean the bank has that money in a vault. Based upon a system called Fractional Banking, banks are only required to keep a small percentage of your money readily available. Rest they invest and make money off. In the case of depositor dollars given the shortage of dollars, those dollars are not being invested into dollar denominated assets. Instead to manage our CAD we are using up dollars faster than we are making them or getting them as deposits (most likely giving them to the government which is likely borrowing them from the State Bank). Which means not only are we seeing the fractional reserve pressure which is normal, we are also seeing pure and simple shortfall of dollars.
This means Banks will not have the dollars to cover their deposits. Also given the spot trade price versus the control price, that differential is getting wider. And someone will have to take that hit. Given the Government is likely the borrower they should take the hit, but they wont or cannot (that is what they think). But in reality the government will have no option. This means a massive supply demand offset. Which means if the government tries to make dollar needs whole, they'll need to free-float the currency. If they do that, you get a currency crisis like what happened in Far East Asia.
This means our import bill goes through the roof. Which make borrowing even more important. And you then get caught in a vicious cycle, or spiraling debt - either that or famine. Your currency becomes worthless and you basically become a bankrupt nation. That is when the foreign debt holders ask for your assets. Like your mineral resources (Reko Dig), coal deposits, your ports, basing rights, road tolls etc etc. And essential without a bullet being fired, you have essentially lost your sovereignty.
That my friends is the near term future of Pakistan.
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