Rupee likely to depreciate in next 6 months: SBP

[maithil]

The Pakistani rupee may encounter events of depreciation against the US dollar over the next six-month period. The country, however, remained confident that the actions taken on money laundering and terror-financing would help it in exiting from the Financial Action Task Force’s (FATF) grey-list next month.

“Over the next six months, foreign exchange rate risk, balance of payment pressures, widening fiscal deficit and increase in domestic inflation were reported as key risks,” State Bank of Pakistan (SBP) said in its annual Financial Stability Review (FSR) 2018 launched on Thursday.

“The likelihood of occurrence of a high risk event in Pakistan’s financial system over the short-term is slightly higher than the medium-term,” the central bank said in the perception survey.

The local currency has recovered 2.3% to Rs156.38 to the US dollar compared to fiscal year 2019’s closing at Rs160.05 following slight improvement in the current account deficit and foreign currency reserves.



As many as 92 people participated in the third annual survey. These included executives from commercial banks, insurance companies, exchange companies, financial journalists, members of the academia, SECP officials, and think tanks. The SBP launched the survey the next day the global rating agency Moody’s highlighted similar risk factors in Pakistan’s economy on Wednesday.

“Risk of political uncertainty has subsided after general elections (in July 2018),” the perception survey added. The central bank said that law enforcement agencies are investigating the widest range of terrorism financing activity and that the country will be successful in implementing the action plan agreed with the FATF.

“Pakistan is working to implement the action plan by September 2019 to negotiate an exit from the ‘grey-list’,” the report said.

https://tribune.com.pk/story/2050290/2-rupee-likely-depreciate-next-6-months-sbp/

 

[blueazure]

BS !

the state bank is like a drunk whore that just keeps on printing money , and when the bubble bursts, they simply raise interest rates to do ' quantitative easing' and cause a recession.

compare this with USA and Europe, Central banks there are printing money at a record pace and have lowered interest rates to near zero, LOL . madness .. in denmark , they 'pay' you to get loans from banks


anyway,,, my popcorns are ready >> eagerly waiting for the melt down ( ppl should see the HBO series, chernobyl ) . we are inside the reactor and its operators have no clue how to run it


and yes, in the end,it will be the plebs who'll be crying and not the rich .. they're invested in metals and have secured vaults in swiss banks ( and properties there too)

------------------------------------

meanwhile, russia and china's central banks are stacking up gold like its the end of the world ..

https://www.bloomberg.com/news/arti...cking-up-on-gold-as-putin-ditches-u-s-dollars

https://www.themoscowtimes.com/2019/04/09/russias-gold-reserves-hit-five-year-high-a65147

https://marketrealist.com/2019/07/is-china-buying-up-gold-in-a-bid-to-de-dollarize/

https://markets.businessinsider.com...o-prepare-for-the-trade-war-2019-8-1028427737




where did all the gold in reko dik go ???

 

[Affan-khan]

"State Bank of Pakistan (SBP) said in its annual Financial Stability Review (FSR) 2018 launched on Thursday"

it already happen. now the situation is lot better.

 

[Arsalan]

The Pakistani rupee may encounter events of depreciation against the US dollar over the next six-month period. The country, however, remained confident that the actions taken on money laundering and terror-financing would help it in exiting from the Financial Action Task Force’s (FATF) grey-list next month.

“Over the next six months, foreign exchange rate risk, balance of payment pressures, widening fiscal deficit and increase in domestic inflation were reported as key risks,” State Bank of Pakistan (SBP) said in its annual Financial Stability Review (FSR) 2018 launched on Thursday.

“The likelihood of occurrence of a high risk event in Pakistan’s financial system over the short-term is slightly higher than the medium-term,” the central bank said in the perception survey.

The local currency has recovered 2.3% to Rs156.38 to the US dollar compared to fiscal year 2019’s closing at Rs160.05 following slight improvement in the current account deficit and foreign currency reserves.



As many as 92 people participated in the third annual survey. These included executives from commercial banks, insurance companies, exchange companies, financial journalists, members of the academia, SECP officials, and think tanks. The SBP launched the survey the next day the global rating agency Moody’s highlighted similar risk factors in Pakistan’s economy on Wednesday.

“Risk of political uncertainty has subsided after general elections (in July 2018),” the perception survey added. The central bank said that law enforcement agencies are investigating the widest range of terrorism financing activity and that the country will be successful in implementing the action plan agreed with the FATF.

“Pakistan is working to implement the action plan by September 2019 to negotiate an exit from the ‘grey-list’,” the report said.

https://tribune.com.pk/story/2050290/2-rupee-likely-depreciate-next-6-months-sbp/

Article is quoting a 2018 review to comment on 2020 economic situation. A lot have changed and things are getting better. However on a personal level, i do expect the Dollar to go up a bit before it comes back and settles around 150Rs mark and remains stable there. The future will then depend on how well we do but the change from there onward will be gradual.