Dollar hit to 166.30 inter bank market against PKR. 2.2 rupee devalaution in a just 3 days.

[Norwegian]

Stability in USD

Stability in USD between 2014 - 2017 resulted in the current mess Khotay

 

[Maula Jatt]

Investors are paid back in foreign currency. Investors are not coming because Pakistan doesn't have enough foreign exchange to pay back the investors

If I am a business owner and I open up a it firm or a factory in Pakistan and I am using usd and it's constantly fluctuating like a mad man

That's not good for business, actually I would want nothing to do with that country, put yourself in the shoes of that business and figure out why a constantly wildly changing usd isn't good for my business

 

[Desprado]

Investors are paid back in foreign currency. Investors are not coming because Pakistan doesn't have enough foreign exchange to pay back the investors

BS. We are paying 6 to 8% to RDA investors on yearly bases on dollar investment. They are not coming because they know they will not make any profit in Pakistan ,where hyper inflation is bond to come, no returns in profit as currency is in default state, local investor are only buying dollar and non import out flow is more than 600 million dollar last year.

People are taking out there money because unstable local currency. They will get returns in PKR not in dollar just like any other country expect USA it self. They have to convert their profit into PKR than use SCRA account to take their out flow.

If I am a business owner and I open up a it firm or a factory in Pakistan and I am using usd and it's constantly fluctuating like a mad man

That's not good for business, actually I would want nothing to do with that country, put yourself in the shoes of that business and figure out why a constantly wildly changing usd isn't good for my business

Only good in Pakistan. Daily devaluation of 1 rupee is will result in Charm only in Pakistan.

 

[Maula Jatt]

Stability in USD between 2014 - 2017 resulted in the current mess Khotay
View attachment 772898View attachment 772899

That was an extreme and this is another extreme (although not as bad as the other extreme but this isn't good either)

You need to draw the line somewhere, and that line can change to be more realistic in terms of market value, but not every day, where dollar is wildly swinging from here to there

 

[Norwegian]

If I am a business owner and I open up a it firm or a factory in Pakistan and I am using usd and it's constantly fluctuating like a mad man

That's not good for business, actually I would want nothing to do with that country, put yourself in the shoes of that business and figure out why a constantly wildly changing usd isn't good for my business

Foreign investors are only worried about their returns in foreign currency. What current exchange rate is irrelevant for them.

 

[Desprado]

Foreign investors are only worried about their returns in foreign currency. What current exchange rate is irrelevant for them.

Randi ki aulad USD always convert from local currency first when you invest in country. Are you are reading PTI economy economic book or what?

Exchange rate is everything for them that is why India had 100 billion dollar FDI in 2021-2022. See any data in the world with stable currency has increase in FDI


We are in line with Sri Lanka Argentina. Both are defaulted ,however, there currency is better than us in terms of movement. There FDI % is same as Pakistan due to currency crisis.

 

[Norwegian]

People are taking out there money because unstable local currency.

And how you make currency stable Patwari when Pakistan has negative foreign exchange reserves, Khotay?

 

[Maula Jatt]

@Desprado what's your solution?, We can't go Ishaaq dar mode and make it unrealistic

That was really dumb move, it should be somewhere more realistic but somewhat stable at the same

 

[Norwegian]

That was an extreme and this is another extreme (although not as bad as the other extreme but this isn't good either)

You need to draw the line somewhere, and that line can change to be more realistic in terms of market value, but not every day, where dollar is wildly swinging from here to there

I told you it's necessary evil because Pakistan was left in negative foreign exchange reserves by Pmln donkeys

@Desprado what's your solution?

He wants Darnomics back, despite knowing Pakistan has negative foreign exchange reserves due to his reckless policy of artifically stable dollar exchange rate

Randi ki aulad USD always convert from local currency first when you invest in country. Are you are reading PTI economy economic book or what?

If returns in dollars are negative after conversion from rupee then talk about it. It's not negative for now.

Exchange rate is everything for them that is why India had 100 billion dollar FDI in 2021-2022. See any data in the world with stable currency has increase in FDI

Pakistan had stable PKR / USD between 2014 - 2017. Where did its FDI go? Why did Pakistan land into negative net foreign reserves in 2018, Khotay?

 

[Black Tornado]

Foreign investors are only worried about their returns in foreign currency. What current exchange rate is irrelevant for them.

If you have a company of say a Restaurant Chain then the investment in USD goes to SBP and PKR of similar value as per current exchange rate is invested because your business is Pan-Pakistan and deals in PKR, so say if PKR is 150 a dollar when he invested some 1 million dollars and it becomes for example 200 PKR a dollar then currency devaluation will severely impact his Return on Investment, if your stocks grow 10% in a period of time and PKR becomes 200 from 150 in the same period of time then RoI will be negative for the investor. It is a hypothetical example (exaggerated), so currency devaluation at a slow pace and recovering is healthy for a developing country, but it becomes a problem if currency devaluation is more than appreciation as what @Desprado is saying.

 

[Desprado]

@Desprado what's your solution?, We can't go Ishaaq dar mode and make it unrealistic

That was really dumb move, it should be somewhere more realistic but somewhat stable at the same

1) Get IMF program back even have to increase electricity.

2) Increase petrol prices because giving subsidy on petrol is far bigger crime what PMLN did.

3) Increase the interest before IMF tells us to increase even more. Around 10% or else IMF will take us back to 13.5% to too much volatility in exchange rate same as June-July and August of 2018-2019. IMF will murder Reza Baqir if it is too volatility in exchange rate because purpose of IMF will be gone.

4) Cut Imports as currency cannot even take a hit of even 1 million dollar outflow and it devalue up to 0.50% on daily bases. It means that currency has no support from FDI, secondary investment, debt investment and SCRA account. There only source of inflow is RDA, Export and remittance.


What is the use of this economic growth if cannot even sustain 775 million CA leave alone 13 billion CA this FY. Devaluation only brings inflation, impact on purchase power, FBR revenue, development budget and etc.


PKR is defaulted is the bitter reality since PTI came. We had very bad guys to negotiate with IMF ,which lead us to mess of market base exchange ,which has not give any kind of benefit to Pakistan. CAD back, no export growth, no investment growth, Inflation at peak, currency in default state, China is taking their investment back due to low returns, Currency cannot even bear to have 1 million dollar out flow.


I am telling as i said 3 month backs that we better in 2018 than we are now.


At least we have to devalue currency only 10 rupee when are were as risk of default was on us and since Reza Baqir company came PKR is always in a war.

It was better that we announced default rather going market base currency. It would devalued one time but would have recovered but now we are in mess major crisis.

If you have a company of say a Restaurant Chain then the investment in USD goes to SBP and PKR of similar value as per current exchange rate is invested because your business is Pan-Pakistan and deals in PKR, so say if PKR is 150 a dollar when he invested some 1 million dollars and it becomes for example 200 PKR a dollar then currency devaluation will severely impact his Return on Investment, if your stocks grow 10% in a period of time and PKR becomes 200 from 150 in the same period of time then RoI will be negative for the investor. It is a hypothetical example (exaggerated), so currency devaluation at a slow pace and recovering is healthy for a developing country, but it becomes a problem if currency devaluation is more than appreciation as what @Desprado is saying.

***** ka bacha ha. He does not know what is investment.
Lol now A. A. H. Soomro


A. A. H. Soomro, Managing Director of Khadim Ali Shah Bukhari Securities, told ProPakistani, “It’s getting volatile now despite dollar availability. Investors are getting jittery. Such rapid drop isn’t healthy for investors and business confidence”.


He added, “REER is 99. But the [current account deficit] will be bad this month as well. It’s time for administrative measures to control luxury imports.”

https://propakistani.pk/2021/08/25/us-dollar-rate-reaches-2021s-highest-level-in-pakistan/

 

[Norwegian]

Exchange rate is everything for them that is why India had 100 billion dollar FDI in 2021-2022.

India already has enough reserves to set a stable exchange rate. Pakistan doesn't have that luxury, idiot

If you have a company of say a Restaurant Chain then the investment in USD goes to SBP and PKR of similar value as per current exchange rate is invested because your business is Pan-Pakistan and deals in PKR, so say if PKR is 150 a dollar when he invested some 1 million dollars and it becomes for example 200 PKR a dollar then currency devaluation will severely impact his Return on Investment, if your stocks grow 10% in a period of time and PKR becomes 200 from 150 in the same period of time then RoI will be negative for the investor. It is a hypothetical example (exaggerated), so currency devaluation at a slow pace and recovering is healthy for a developing country, but it becomes a problem if currency devaluation is more than appreciation as what @Desprado is saying.

There is nothing wrong in currency devaluation as long it happens with market fluctuations. Countries that have large foreign exchange reserves can set a target for currency exchange. Pakistan doesn't have this luxury as its reserves are in net negative.

 

[Desprado]

India already has enough reserves to set a stable exchange rate. Pakistan doesn't have that luxury, idiot

There is nothing wrong in currency devaluation as long it happens with market fluctuations. Countries that have large foreign exchange reserves can set a target for currency exchange. Pakistan doesn't have this luxury as its reserves are in net negative.

Shaukat Tarin should trailed under attempt to murder case of Pakistan Economy. In which world Economy growth can happens, can do CAD or even spend dollar on TERF when reserve are negative? Who is to be blamed? Imran Khan ?

 

[Black Tornado]

India already has enough reserves to set a stable exchange rate. Pakistan doesn't have that luxury, idiot

There is nothing wrong in currency devaluation as long it happens with market fluctuations. Countries that have large foreign exchange reserves can set a target for currency exchange. Pakistan doesn't have this luxury as its reserves are in net negative.

That’s what I’m saying that currency devaluation doesn’t affect Pakistan as Investor cares about net RoI, not currency.

 

[Desprado]

India already has enough reserves to set a stable exchange rate. Pakistan doesn't have that luxury, idiot

There is nothing wrong in currency devaluation as long it happens with market fluctuations. Countries that have large foreign exchange reserves can set a target for currency exchange. Pakistan doesn't have this luxury as its reserves are in net negative.
[/QUOTE

.

"The depreciation of the currency from Rs. 152.28/USD to Rs. 165.2/USD is against the principle of economics. At a time when the country’s foreign exchange reserves are rising, how can currency depreciate? Rising foreign exchange reserves mean inflows are greater than outflows. There is just no economic justification for depreciation."

https://propakistani.pk/2021/08/25/us-dollar-rate-reaches-2021s-highest-level-in-pakistan/

Argentina with 200 million dollar reserve decrease its currency value to only 4% against dollar and need to pay 300 billion dollar debt ,where as Pakistan has highest ever reserve ,which are idle. It better to get defaulted like Argentina at least we would have reserve that had a purpose