Dollar crosses 100 again

[Jungibaaz]

How high will it go? 150 (based on 5 year term)?

I can't say for certain, it depends on how this government handles it, unless it has more tricks up it's sleeves like Saudi grants, it is possible for it to fall that low.

By the way, the fall that occurred before it was bought steady to the 100 mark is no accurate estimate for what might occur later.
Let's see if anything becomes of all that investment the government kept telling us about.

 

[WishLivePak]

I can't say for certain, it depends on how this government handles it, unless it has more tricks up it's sleeves like Saudi grants, it is possible for it to fall that low.

By the way, the fall that occurred before it was bought steady to the 100 mark is no accurate estimate for what might occur later.
Let's see if anything becomes of all that investment the government kept telling us about.

Well I hope then the gov't survives. If qadri takes over, 2 years will be wasted doing nothing and in another 2 years, the debts will need to be start being paid off.

Wish to see pkr at 60 like it used to be under musharaf

Also can rupee every appreciate? Cuz appreciation will hurt exports, so gov't might keep it at 100?

 

[AugenBlick]

But Indian economy can have miracles unlike of Pak. It needs to pay its debt.

So how bad you think pkr will drop?

I think 150 is pushing it.
Projecting low levels of security conflict and No more crazy coup I say in 5 years about 127-132.
Exceptions
- Failure of power Infra/ the power projects I read about.
- major spike in Oil price (e.g. increase in disruption of Oil by ISIS)
- war (Indo/Pak)( this affects both)
Rule of thumb - CAD up => Currency value down. Counteracting force is Domestic savings. More Domestic savings , less effect of this rule. All that I wrote pushes CAD up

 

[WishLivePak]

I think 150 is pushing it.
Projecting low levels of security conflict and No more crazy coup I say in 5 years about 127-132.
Exceptions
- Failure of power Infra/ the power projects I read about.
- major spike in Oil price (e.g. increase in disruption of Oil by ISIS)
- war (Indo/Pak)( this affects both)
Rule of thumb - CAD up => Currency value down. Counteracting force is Domestic savings. More Domestic savings , less effect of this rule. All that I wrote pushes CAD up

And Pakistan has no domestic savings
And it's unlikely to grow much in forseable future based on politics. Add another exception that if Gov't is toppled, it'll effect pkr too.

 

[Jungibaaz]

Well I hope then the gov't survives. If qadri takes over, 2 years will be wasted doing nothing and in another 2 years, the debts will need to be start being paid off.

Wish to see pkr at 60 like it used to be under musharaf

Also can rupee every appreciate? Cuz appreciation will hurt exports, so gov't might keep it at 100?

I wish to see this government go through it's 5 years, come hell or high water.
And don't worry about Qadri, it's a short lived drama. All his promises of inquilab are all false.

The Rupee can, but not within the foreseeable future, it won't be sustainable if it does. And on hurting exports, we're not big on those, we are big on imports, strengthening PKR might pay off. But all depends on the rate at which it occurs.

 

[AugenBlick]

And Pakistan has no domestic savings
And it's unlikely to grow much in forseable future based on politics. Add another exception that if Gov't is toppled, it'll effect pkr too.

But why ? I think as asians we have the same culture of saving .

Also can rupee every appreciate? Cuz appreciation will hurt exports, so gov't might keep it at 100?

Not for developing countries.
They need to borrow heavily to drive massive infra.

 

[WishLivePak]

I wish to see this government go through it's 5 years, come hell or high water.
And don't worry about Qadri, it's a short lived drama. All his promises of inquilab are all false.

The Rupee can, but not within the foreseeable future, it won't be sustainable if it does. And on hurting exports, we're not big on those, we are big on imports, strengthening PKR might pay off. But all depends on the rate at which it occurs.

Qadri is weak but if kpk assembly dissolves and Imran joins qadri, then it starts being a problem. It makes investor think twice before coming to Pakistan, because gov't simply don't last here.

I read before when rupee was appreciating a lot, the gob't was under immense pressure to make it stop, because it was hurting export market. We export a lot of things and if rupee becomes expensive 'suddenly', the markets will look at Bangladesh etc, for example.

Indeed stronger pkr will help us with oil problem but major, our debts will be cheaper to pay off. As in, it'd take less pkr to pay dollar debts. And Pakistan has a lot of debts.

But why ? I think as asians we have the same culture of saving .


Not for developing countries.
They need to borrow heavily to drive massive infra.

Becausw there is looting and corruption. Yes we are big on savings, when it comes to our pockets :p

And that's what I thought woild be reason. All savings need to be spent for infra. Pakistan had been having trouble securing loans for its much needed projects and at this point, they have no choice but to ignore savings for now.

 

[AugenBlick]

Indeed stronger pkr will help us with oil problem but major, our debts will be cheaper to pay off. As in, it'd take less pkr to pay dollar debts. And Pakistan has a lot of debts.


Becausw there is looting and corruption. Yes we are big on savings, when it comes to our pockets :p

And that's what I thought woild be reason. All savings need to be spent for infra. Pakistan had been having trouble securing loans for its much needed projects and at this point, they have no choice but to ignore savings for now.

I am talking about the savings a pakistani average citizen makes. All that money gives muscle to banks and allows "Domestic Borrowing " for local business and government(s).
Savings are never directly "spent". They allow banks to lend more and these loans are spent. For low savings , the banks can not loan and foreign loan or currency printing becomes a must.

Also this IK drama+ TuQ + Karachi will cost Pak a lot. Parties need to make public announcement of "we respect decision and accept defeat". They are made in india because they are essential to Business sentiment. Otherwise Indian institutions are just as Bad as ****.

 

[WishLivePak]

I am talking about the savings a pakistani average citizen makes. All that money gives muscle to banks and allows "Domestic Borrowing " for local business and government(s).
Savings are never directly "spent". They allow banks to lend more and these loans are spent. For low savings , the banks can not loan and foreign loan or currency printing becomes a must.

Also this IK drama+ TuQ + Karachi will cost Pak a lot. Parties need to make public announcement of "we respect decision and accept defeat". They are made in india because they are essential to Business sentiment. Otherwise Indian institutions are just as Bad as ****.

Thanks for correcting me.

Also Pakistan doesn't get world events, like cricket, which brings a lot of dollars. Instead we have to see in other countries, which means purchasing dollars.. The remitance is what is keeping rupee alive, along with other reasons of course.

A bit off topic,

1) Imran wants mid elections if relection is not held on 4 seats.
2) If he gets reelection done, he'll use it to shame pmln in next election, saying they're riggers etc.

So both ways he wins, but Pakistan lose with option 1.

 

[AugenBlick]

Also Pakistan doesn't get world events

Privatize cricket board. That's what we have in india.

Pakistan doesn't get world events, like cricket

Meh their forex is welcome but overrated.

along with other reasons of course

such as?

A bit off topic,
1) Imran wants mid elections if relection is not held on 4 seats.
2) If he gets reelection done, he'll use it to shame pmln in next election, saying they're riggers etc.
So both ways he wins, but Pakistan lose with option 1.

Whos gonna pay for that?

Anyway , @cheekybird can ask rahul to be Pak PM

But on a serious note, the way governments legitimacy is being challenged is not good for Pak.

 

[WishLivePak]

Privatize cricket board. That's what we have in india.


Meh their forex is welcome but overrated.


such as?


Whos gonna pay for that?

Anyway , @cheekybird can ask rahul to be Pak PM

But on a serious note, the way governments legitimacy is being challenged is not good for Pak.

Cricket still won't come, due to fear of attacks. Irish team was coming until Karachi attack..

Such as? Well, Saudi grant :p and there are probably more reasons which are stopping devaluation of rupee

 

[AugenBlick]

Such as? Well, Saudi grant :p and there are probably more reasons which are stopping devaluation of rupee

Then I advise you to sell you stock of PKR.
Basti me aag lagi toh pehle apna ghar bhujao.

 

[WishLivePak]

Then I advise you to sell you stock of PKR.
Basti me aag lagi toh pehle apna ghar bhujao.

I'm in Canada, I personally only have stock of CAD :p

And some USD of course. Should've picked up some EUR during greek crisis. Or even swiss money. Everything is beating canadian dollar

 

[AugenBlick]

And some USD of course. Should've picked up some EUR during greek crisis. Or even swiss money. Everything is beating canadian dollar

Enquire a forex account at your local bank

 

[cheekybird]

Anyway , @cheekybird can ask rahul to be Pak PM
.

I want Rahul g to be india's PM not pakistan