US dollar reaches record high of Rs121 in interbank market

[Kuru]

Pakistan’s foreign exchange reserves dropped to the lowest in more than three years

Didn't the CPEC start around the same time i.e. 3 years ago ?

The CPEC really turned out to be the "game changer" for pakistan's eeconomy!

I'm seriously worried for Pakistan now, a bankrupt country is the last thing we want in our neighborhood as this will have geo-stratagic and geo-political implications.

 

[SunilM]

Didn't the CPEC start around the same time i.e. 3 years ago ?

The CPEC really turned out to be the "game changer" for pakistan's eeconomy!

I'm seriously worried for Pakistan now, a bankrupt country is the last thing we want in our neighborhood as this will have geo-stratagic and geo-political implications.

What I find even more interesting is the attitude of China. They have given drip feed to Pakistan like 500 million to a Billion every month, keeping them teetering at the brink even though they can infuse billions in one go. Evn for this month i.e June 2018, they are only providing 500 Million dollars in safe deposit. Maybe if they overtly bail out pakistan, other indebted countries of OBOR will know China has no option to bail them out. An impression the Chinese would/should try to avoid at all cost.

Also, giving drip feed gives them better control over the client state, which could be beneficial for India on certain occasions. Look at what China did at FATF, so some chinese leverage on Pakistanis maybe good i.e if they succeed where the US failed.

 

[enquencher]

^^ Are you in any way related to Prof Riaz Haq?

Haha that riaz is a joker...once just here his mental masturbation.

 

[SunilM]

Volatility in interbank market drives up US dollar to Rs121.50

KARACHI: The US dollar shot up to Rs121.5 in the interbank market after it closed at Rs119.84 on Monday.

The greenback had reached a record-high of Rs121 on June 11 — the State Bank of Pakistan (SBP) had attributed the movement to a gap between foreign exchange demand and supply in the interbank market.

The dollar has increased by over Rs15 in the past six months.

According to SBP, despite the continued growth in exports — 13.3 percent in July-April Financial Year (FY) 18 — and some uptick in remittances, growing imports pushed the current account deficit to US$ 14.0 billion during the first ten months of FY18, which is 1.5 times the level of deficit realised during the same period last year.

The central bank had said the 'market-driven adjustment' in the exchange rate along with other recent policy measures is expected to contain the imbalances in the external account, thereby containing aggregate demand and also facilitating the prospects for generating non-debt creating inflows.

In March, the US dollar had shot up by Rs4.93 in the inter-bank market to hit a high of Rs115.5 before coming down to Rs115 at the close of business.

Since December, the rupee has fallen by about 14 percent.

https://www.geo.tv/latest/198949-volatility-in-interbank-market-drives-up-us-dollar-to-rs12150

 

[lastofthepatriots]

Wow...the H!ndians here seem quite thrilled to say the least.

I reckon at this rate the h!ndian members are gonna surgically remove their bottom two ribs and initiate auto-fellatio due to their unconstrained excitement. @Areesh @lastofthepatriots

LMAO

 

[pzfz]

Corrective measures being taken. First of many one hopes. PMLN was more interested in a facade of "development" than macro stability. SBP/FinMin making sound policies after the vote-seeking carnage of noon league. Very good for the country's future.

 

[airmarshal]

A great achievement of experienced financial team of PMLN. Pakistan stands to beg for another stringent IMF program.

If the Noon League was sincere to the country, Pakistan would in better shape economically after its tenure.

 

[SunilM]

Pakistan's rupee extends slide, c.bank may have lent support

Reuters Staff


KARACHI, June 12 (Reuters) - The Pakistan rupee slid against the dollar for a second day before paring some losses, dealers said on Tuesday, noting the central bank may have stepped in to stabilise the currency.

The rupee slumped 3.8 percent on Monday in what appeared to be the third currency devaluation by the central bank in seven months amid fears of a balance of payments crisis.

The rupee fell to 122.00 per U.S dollar in early trading on Tuesday after closing at 119.85 previously but within an hour it had recovered to 120.20 by noon.

“People were expecting that the dollar will further shoot up, but apparently the central bank has played some role resulting in a slight recovery,” Fawad Khan, head of research at BMA Capital, told Reuters.

https://in.reuters.com/article/paki...ide-cbank-may-have-lent-support-idINL4N1TE2PQ

Well that means loss of precious forex.what a wasteful excercise.if central banks was required to intervene, it should have done earlier when sentiments were not down. Now more dollars will be offloaded in the market to control the slide.