• Wednesday, May 22, 2019

US dollar jumps to Rs146.25 in open market

Discussion in 'Pakistan Economy' started by Reddington, May 15, 2019.

  1. VCheng

    VCheng ELITE MEMBER

    Messages:
    36,143
    Joined:
    Sep 29, 2010
    Ratings:
    +55 / 30,795 / -4
    Country:
    Pakistan
    Location:
    United States
    Aap ney ghabrana nahi hey.
     
    • Thanks Thanks x 1
  2. nahtanbob

    nahtanbob SENIOR MEMBER

    Messages:
    3,858
    Joined:
    Sep 24, 2018
    Ratings:
    +0 / 1,103 / -17
    Country:
    United States
    Location:
    United States
    Your stupidity or naivette or belief in conspiracy theories is beyond belief

    how does 20% devaluation make a big difference ? If I am a foreigner with deep pockets investing $300 million or $360 million to purchase some enterprise in Pakistan makes no difference. Devaluation hurts the income statement and investment of all the existing investors. They are wealthy and powerful too

    @Dubious @ziaulislam @maithil
     
  3. pkuser2k12

    pkuser2k12 SENIOR MEMBER

    Messages:
    4,829
    Joined:
    Oct 28, 2012
    Ratings:
    +3 / 4,540 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Dollar slides 2.25 rs and settles at 144 rs after government decides to crack down on Exchangers


    After jumping to 146 rs Dollar slides to 144 rs with in hours

    15-05-2019




     
  4. Dubious

    Dubious MODERATOR

    Messages:
    32,691
    Joined:
    Jul 22, 2012
    Ratings:
    +68 / 64,976 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    please be civil and polite if you cant leave it to someone else with manners and patience to help explain!
     
  5. ziaulislam

    ziaulislam ELITE MEMBER

    Messages:
    10,096
    Joined:
    Apr 22, 2010
    Ratings:
    +10 / 7,701 / -2
    Country:
    Pakistan
    Location:
    United States
    rupee has no value, its mean of transaction that should be as close as possible to reality..is this such a difficult concept for Pakistanis to understand

    rupee is going to be stabilize briefly around 142-144 once final agreement is signed before that its going to go up and down due to speculation in open market.

    afterwards its going to loose 3-4% yearly till productivity goes up and state bank lending goes down

    we would never had this problem had rupee been slowly devlaued/kept at its orginal value in the last 5 years..infact i suspect today the rupee would have been much better at around 125-130 had we not wasted 20b $ in import subsidy

    where is the money? currently govt is going through a crisis that 1200% worse than the crisis that led to PPPP ending up with IMF and doing 40%

    yes, there are certain things that have /should have been done earlier especially on revenue side, agriculture, legal reforms(though legal reforms leader is saying they will be on hold till 2021 as PTI cant legislate due to non cooperation from senate) the fact that all legislation came through presidential ordinance simply proves thta
     
    • Thanks Thanks x 1
  6. nahtanbob

    nahtanbob SENIOR MEMBER

    Messages:
    3,858
    Joined:
    Sep 24, 2018
    Ratings:
    +0 / 1,103 / -17
    Country:
    United States
    Location:
    United States
    I am sorry. I will be civil

    One factor that determines the value of assets depends on how many bidders are there. I can see situations where a valuable asset is dumped in a fire sale because there are not any bidders or just one bidder
     
  7. slapshot

    slapshot FULL MEMBER

    Messages:
    1,704
    Joined:
    Dec 8, 2011
    Ratings:
    +1 / 2,154 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Indeed! It all comes down to where you can keep it by force. We have seen US complaining to china about keeping their Yuan low against dollar intentionally. T
     
  8. ejaz007

    ejaz007 SENIOR MEMBER

    Messages:
    5,574
    Joined:
    Jul 25, 2007
    Ratings:
    +1 / 2,412 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    upload_2019-5-16_12-34-46.png
     
  9. ziaulislam

    ziaulislam ELITE MEMBER

    Messages:
    10,096
    Joined:
    Apr 22, 2010
    Ratings:
    +10 / 7,701 / -2
    Country:
    Pakistan
    Location:
    United States
    Pakistan rupee would probably settle around 144-145 but it might hit 150 till deal is finalized and speculation ends but after wards i would expect it to losd3 -4% yearly (just like other regional currencies) translates into 30% loss over 5 years, 100% loss over 20 years. I.e it should be 180-190 by 2023

    had rupee been kept independent and it lost 3-4% yearly since 1998 and more if govt isnt doing good(high lending) pakistani rupee would have been today at 70 rs..instead we keep rigid rupee for 5 years and even worse devalaution whe new govt comes at around 40-50%

    so we saw shock from 30 to 60 in 1998
    than 68-90 in 2008
    than we saw another shock of 103 to 140
    It intentionally does that to keep it self competitive ..it actually buys excessive fireigb exchange also kbown as building preserves ..the reason why china reserves are more than REST OF THE WORLD COMBINED
     
  10. slapshot

    slapshot FULL MEMBER

    Messages:
    1,704
    Joined:
    Dec 8, 2011
    Ratings:
    +1 / 2,154 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Honestly Rupee has turned into a joke. Is this even going to stop somewhere?
     
  11. ziaulislam

    ziaulislam ELITE MEMBER

    Messages:
    10,096
    Joined:
    Apr 22, 2010
    Ratings:
    +10 / 7,701 / -2
    Country:
    Pakistan
    Location:
    United States
    Because of peoples behavior ..nobody was asking PMLN govt why they artificially kept the rupee high caysing in end a bigger fall

    Do you see indian rupee at same level since 1947..it was losing 2-3% /year while our currency was gaining..end of the day the amount if money spent to do that is doubled when returned(7% Interest 10 years maturation) so fall is twice as fast..

    You need to have a 7% inflation and 2-3 natural loss if rupee to keep things in order and to promote savings
     
  12. Max Pain

    Max Pain FULL MEMBER

    Messages:
    1,301
    Joined:
    Aug 14, 2014
    Ratings:
    +0 / 912 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    what is the solution?
    will rupee ever reach 100 again?
     
  13. ARMalik

    ARMalik FULL MEMBER

    Messages:
    1,284
    Joined:
    Dec 7, 2017
    Ratings:
    +3 / 1,895 / -0
    Country:
    Australia
    Location:
    Australia
    There are plenty of ways but it needs common sense which the Clowns sitting in so called Pakistan's leadership just do not have or they deliberately do it to further the agenda of Pakistan people and its economy being kept hostage.

    So here is the thing, who are the speculators who drive up the price of the US dollar? These are mainly private exchangers, some of them are even being managed from overseas by the same foreign entities who provide US dollar loans to Pakistan! So how do you control these private exchangers? Well you make their life hell and heavily legislate them and control them and make example of them. In fact you go one step further and abolish licences and only issue dollars through state controlled outlets.

    There are plenty of way but the corrupt donkeys sitting in the government and the deep state will never let this happen because they are pathetic and they religion is not Islam, it is Money.
     
  14. Riz

    Riz SENIOR MEMBER

    Messages:
    2,495
    Joined:
    Jan 20, 2010
    Ratings:
    +0 / 2,936 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Only our exporters will benefit most with this current rate of US$... This will help exporters to invest more in this sector
     
  15. maithil

    maithil FULL MEMBER

    Messages:
    1,316
    Joined:
    May 21, 2010
    Ratings:
    +0 / 646 / -16