What happens when your foreign reserves are depleted: A real world example.

[Zibago]

This happens only in Pakistan when you useless and zero value reserve

https://twitter.com/x/status/1437662087266844678

You think reserves exist to subsidize imports and consumption?

 

[Shehryar Ashraf]

You don't even know such an important agreement?

https://baijiahao.baidu.com/s?id=1601343006971787961&wfr=spider&for=pc&searchword=中国 巴基斯坦 本币交换

https://tribune.com.pk/story/2266678/pak-china-currency-swap-a-cure-for-dollar-dependency

In addition, Pakistan's largest importer is China, but the trade between China and Pakistan is not settled in US dollars. In other words, the depreciation of the PKR exchange the US dollar will not affect your largest import channel.

If the rupee depreciates against the dollar, wouldn't it depreciate against the Chinese Yuan? given that the exchange rate between the Yuan and the Dollar does not change

 

[RIP Pak LAW]

Sri Lankan tourism industry badly hurt from pandemic.

 

[MH.Yang]

If the rupee depreciates against the dollar, wouldn't it depreciate against the Chinese Yuan? given that the exchange rate between the Yuan and the Dollar does not change

The local currency exchange was conducted at the beginning of the year, and the Pakistani currency did not depreciate at the beginning of the year.
The trade between Pakistan and China is settled in CNY. It certainly will not be affected by devaluation.

 

[Desprado]

Sri Lankan tourism industry badly hurt from pandemic.

PTI fanboys say otherwise.