Rupee firms against US dollar

[Panther 57]

The above is based on hearsay, lunatic ravings of coup-lover mentality, and conspiracy theories all rolled into one.

@Panther 57 have you lost your mind sir? Do you not think that movement of such massive amounts will cause serious fluctuations in exchange rate? How can you substantiate your claim that Sharif's will encash $5 Billion at Rs. 111/ USD? How can you ignore the fact that market reacts to movement of even a small fraction of such a sum of foreign exchange?

I gave you a negative rating and then took it back because apparently wild conspiracy theories are not against forum rules. But I do hope that people think a little about what they read before issuing Positive ratings for unsubstantiatable claims and baseless conspiracy theories.

For crying out loud..... Come on....

This article has not been written by me. Only time will tell how dollar will react. However, I am of the opinion that dollar devaluation is temporary and will rebound within this running year. Someone has gained from this upward and then downward variation of dollar. Exporters are using all their influence to reverse this downward trend as soon as possible. Not far way is the time that this 1.5 billion is going to vanish into someones coffer. What will happen then?

 

[Tameem]

This article has not been written by me. Only time will tell how dollar will react. However, I am of the opinion that dollar devaluation is temporary and will rebound within this running year. Someone has gained from this upward and then downward variation of dollar. Exporters are using all their influence to reverse this downward trend as soon as possible. Not far way is the time that this 1.5 billion is going to vanish into someones coffer. What will happen then?

First, There is another 1.5 Billion coming in SBP account Soon as the total Gift was of 3 Billion in the first place.
Than there is 3G/4G Liscence sale coming up from which GOP thinks to earn 1.5 Billion More.
From Coalition Support Fund uptill 31st Dec, 2013 Billing we will get another 1.6 Billion
The held up amount from Itesalat(PTCL) sale of 0.8 Billion will soon remitted in coming months.
Than GOP is planning to sell Eurobond in comming months from which she could earn over Half a billion as well.

Therefore, don't worry the pressure remains on Dollar for a foreseeable future and Rupee will remain around 100-101 Inshallah......Go sell your doomsday scenario elsewhere.

 

[Panther 57]

First, There is another 1.5 Billion coming in SBP account Soon as the total Gift was of 3 Billion in the first place.
Than there is 3G/4G Liscence sale coming up from which GOP thinks to earn 1.5 Billion More.
From Coalition Support Fund uptill 31st Dec, 2013 Billing we will get another 1.6 Billion
The held up amount from Itesalat(PTCL) sale of 0.8 Billion will soon remitted in coming months.

Therefore, don't worry the pressure remains on Dollar for a foreseeable future and Rupee will remain around 100-101 Inshallah......Go sell your doomsday scenario elsewhere.

Nothing can be done to change Kashkol mentality. Facts do not change with alms

 

[M. Sarmad]

But I do hope that people think a little about what they read before issuing Positive ratings for unsubstantiatable claims and baseless conspiracy theories.

For crying out loud..... Come on....

I am sorry sir , next time I would ask you first , if I find some post informative ...
By the way I bet this post was much better than the post for which you got 3 positive ratings .....

 

[Tameem]

Nothing can be done to change Kashkol mentality. Facts do not change with alms

OK, Say whatever to heal your Burning........i have deep sympathies for people like you!!

I am sorry sir , next time I would ask you first , if I find some post informative ...
By the way I bet this post was much better than the post for which you got 3 positive ratings .....

No need of this sentence line........Sureshort a Negative Post!!

 

[M. Sarmad]

No need of this sentence line........Sureshort a Negative Post!!

Quite expected from a PMLN supporter !!!!

 

[Tameem]

Quite expected from a PMLN supporter !!!!

Another Negative Post

 

[VCheng]

Whether is gain is temporary or long lasting,Don't you think the Rupee appreciation is a Good sign for the economy?

What comes first? If the PKR appreciates due to an improving economy, it is good. But if the PKR is manipulated into a better exchange rate, the economy suffers because Pakistani exports become more expensive in the international markets and imported good in the domestic markets become cheaper.

What is the actual problem?

The actual problem is the circular debt created by non-payment by government departments, military installations and thieving customers.

Text book Economics, works only in matured economies not in Pakistan where just one Good or Bad rumors plays havoc then overall conditions afterall.

The principles of economics apply equally to all economies.

But does the artificial prop up not encourage a change in the balance of payments? Perhaps through local investment?

Artificial props cause far more problems than they solve.

Pakistani exports becomes more expensive in dollar terms in the international markets, making our companies less competitive against their competition. Imported goods become cheaper, leading to more consumption domestically. These together lead to a lrger deficit and cause more pressure for devaluation in the long run that cannot be resisted.

 

[HRK]

What I would suggest is to let the PKR float freely to its true value rather than be propped up artificially and to concentrate on improving the balance of payments by reducing imports and increasing exports as much as is possible. The PKR may go down steadily for a few years before it starts to improve, but those gains would be real and therefore durable with tangible dividends.

@VCheng this time as a matter fact SBP didn't intervene in the interbank or open market by selling $ to keep its exchange rate stable .... if you are observing currency exchange market from past few days, I am sure you must be aware that SBP instructed commercial banks to make oil payments from there end, rather to provide $ from SBP reserves, and the too during the high market price time.

Ishaq Dar by some measures reduced the speculations in exchange market to the minimum which translated to appreciation of Rs. so it is the success of 'operational tactics', as a fundamental policy Pakistan practice free float exchange rate.

 

[VCheng]

@VCheng this time as a matter fact SBP didn't intervene in the interbank or open market by selling $ to keep its exchange rate stable .... if you are observing currency exchange market from past few days, I am sure you must be aware that SBP instructed commercial banks to make oil payments from there end, rather to provide $ from SBP reserves, and the too during the high market price time.

Ishaq Dar by some measures reduced the speculations in exchange market to the minimum which translated to appreciation of Rs. so it is the success of 'operational tactics', as a fundamental policy Pakistan practice free float exchange rate.

The SBP is only one of the tools at Mr. Dar's disposal to manipulate the PKR. Using SBP this time openly would invite IMF's wrath as a violation of its new program, so other means were used. The fact remains that the present bump in the PKR's value is engineered and has no legs.

 

[xyxmt]

I never knew we have so many Economists here, thats why country economy is so f'ed up

 

[Bilal.]

The SBP is only one of the tools at Mr. Dar's disposal to manipulate the PKR. Using SBP this time openly would invite IMF's wrath as a violation of its new program, so other means were used. The fact remains that the present bump in the PKR's value is engineered and has no legs.

If SBP did not intervene their was no manipulation, period. But then again as some one said I you repeat a lie often enough, it becomes the truth.

 

[VCheng]

If SBP did not intervene their was no manipulation, period. But then again as some one said I you repeat a lie often enough, it becomes the truth.

So if the SBP is stopped from desperately mopping up dollars in the open market, does that qualify as manipulation or not?

 

[Bilal.]

So if the SBP is stopped from desperately mopping up dollars in the open market, does that qualify as manipulation or not?

Of course not, show me one source that would call it currency manipulation. The only currency manipulation is when a currency is bought or sold in market to prop up or bring down it's value.

 

[VCheng]

Of course not, show me one source that would call it currency manipulation. The only currency manipulation is when a currency is bought or sold in market to manipulate it's value.

Sometimes NOT selling or NOT buying is equally effective for manipulation.