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Pakistan Rupee crashes at 300

Where are those duffers now. Remember when ISPR duffer came out and said removing IK was good for the economy. bloody good for nothing duffers
 
Soon to be $500 for a dollar. Good job neutral.
Does anyone know why there are these sharp downturns (i.e., Rupee appreciates briefly by about 5 rupees before coming back) for very brief periods every few days? Is SBP trying to suppress the fall and failing?
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Sovereign default is the likely outcome. There is so little room for manoeuvre in terms of policy and there is little Pakistan can do in terms of buttressing the Rupee.
The IMF terms that Pakistan agreed to stick to, say the variance between the market rate and the official rate cannot be more than 1.75%.
Already, Pakistan over the last few weeks has gone well beyond that and now Pakistan is clearly breaking the terms of the IMF agreement .
Either amend the official rate or watch the hammer fall.

Thanks. Insightful post.
 
Sovereign default is the likely outcome. There is so little room for manoeuvre in terms of policy and there is little Pakistan can do in terms of buttressing the Rupee.
The IMF terms that Pakistan agreed to stick to, say the variance between the market rate and the official rate cannot be more than 1.75%.
Already, Pakistan over the last few weeks has gone well beyond that and now Pakistan is clearly breaking the terms of the IMF agreement .
Either amend the official rate or watch the hammer fall.
Sovereign default is unlikely. Much of the borrowing is multilateral or bilateral with small amount of private borrowing. All the borrowers know about power crisis and political difficulties. Nobody wants to push a large country over the edge.
 
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