US dollar reaches Rs160 in interbank market

[Nilgiri]

As explained earlier, the irregularlities are mainly because of the fact that it was anchored down previously and kept at 140Rs for a dollar when real value was in the 160s. Now that free floating is allowed it is going up toward that real value fluctuating up and down at times. Will steady once its there and then in 5 - 6 months i see it coming down gradually, under free float, to 140/150 mark

These are more the argument for the positioning of the level of exchange rate...and PTI admin coming to reality regarding that compared to previous admin policy on it.

A pure free float would see much wilder swings and also lot more resolution in the exchange rate movement. It's still mostly a managed peg, just the peg is allowed to move to different level now and there is some greater lattitude given for its acceptable range.

But given its no longer a robustly fixed tight peg (like say China has done for long periods)....it is somewhat just a matter of do you see a glass half full or half empty kind of thing.

Also what do you see structurally prompting in 5-6 months, that too by pure free float pressure, an appreciation back to 140-150 level? That would essentially mean you are arguing 140-150 is the natural structural equilbrium for the PKR-USD in the mid term?....but I feel it will take a year or two at least to even see what the net effect of any structural reforms + policy actions will be as they relate to loan/imports vs exports + remittances and investment.

 

[nahtanbob]

Govt policies is forcing people to abandon pkr.-- I mean, people sleep only to know next day that they have lost x amount of wealth due to devaluation.--- I think this daily devaluation must end now.

pakistan is not a total basketcase. at some point it will end.

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Very bad & very said!!
@BHarwana

at least get your spelling right

 

[Syed1.]

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Very bad & very said!!
@BHarwana

Unfortunately the dollar rate couldn't buy you a good enough education though.

 

[darksider]

 

[Indx-techs]

Unfortunately the dollar rate couldn't buy you a good enough education though.

My education is what you can only dream of! And kind of stupidity @BHarwana used to showcase is something we can't even think of!!

 

[Arsalan]

These are more the argument for the positioning of the level of exchange rate...and PTI admin coming to reality regarding that compared to previous admin policy on it.

A pure free float would see much wilder swings and also lot more resolution in the exchange rate movement. It's still mostly a managed peg, just the peg is allowed to move to different level now and there is some greater lattitude given for its acceptable range.

But given its no longer a robustly fixed tight peg (like say China has done for long periods)....it is somewhat just a matter of do you see a glass half full or half empty kind of thing.

Also what do you see structurally prompting in 5-6 months, that too by pure free float pressure, an appreciation back to 140-150 level? That would essentially mean you are arguing 140-150 is the natural structural equilbrium for the PKR-USD in the mid term?....but I feel it will take a year or two at least to even see what the net effect of any structural reforms + policy actions will be as they relate to loan/imports vs exports + remittances and investment.

The "much wilder swing" was controlled because of regular amounts coming in from gulf. That helped a bit.

 

[Rajput_Pakistani]

The "much wilder swing" was controlled because of regular amounts coming in from gulf. That helped a bit.

@Arsalan Is it true that commercial banks are purchasing dollers from open market? They have purposefully increased interbank rates for that?
If its true, is it good or bad?

 

[Arsalan]

@Arsalan Is it true that commercial banks are purchasing dollers from open market? They have purposefully increased interbank rates for that?
If its true, is it good or bad?

Not aware of any such thing. But if they were BUYING from open market why would the increase the rate?

 

[Rajput_Pakistani]

Not aware of any such thing. But if they were BUYING from open market why would the increase the rate?

Open market rate is less by 2, 3 PKR. People are exchanging dollers with banks. Previously it was other way around

 

[Arsalan]

Open market rate is less by 2, 3 PKR. People are exchanging dollars with banks. Previously it was other way around

Open market rate on Wednesday was higher than inter bank. Not aware of it today. Will check.

 

[Rajput_Pakistani]

Open market rate on Wednesday was higher than inter bank. Not aware of it today. Will check.

https://www.dawn.com/news/1490532

"The US Dollar rose Rs7.2 to hit Rs164 in interbank trade on Wednesday at the close of the day's trading.

The greenback is being traded at Rs163 in the open market ─ an increase of at least Rs6."

 

[Zibago]

https://twitter.com/x/status/1144169903139766272

People are making fun of him now.

Yeah that twitter person was part of Shehbaz Sharif,s team (she blocked me for calling her out though)

 

[Arsalan]

https://www.dawn.com/news/1490532

"The US Dollar rose Rs7.2 to hit Rs164 in interbank trade on Wednesday at the close of the day's trading.

The greenback is being traded at Rs163 in the open market ─ an increase of at least Rs6."

Bro 26 June ko mein ny kud aik payment krni thee so on that day open market was 3Rs lower than interbank. Not sure where Dawn got this NEWS from! June 26 ka tu mujy kud pata ha!

 

[newb3e]

mulak is fked!!

 

[VCheng]

mulak is fked!!

S.N.A.F.U.

Nothing new, and yet the country soldiers on!