Pakistan's rupee has staged a smart recovery against the US dollar

[SuvarnaTeja]

something you may enjoy. As Modi’s ideology grows the economy falls, and this was all pre-pandemic.

https://twitter.com/x/status/1371753999070859265

What is appalling is Modi seem to suck up to the people who threaten India while fighting with people who are friendly to India.

Twitter does propaganda against India and Modi remains silent and takes no action while banning Chinese apps like Tick-Tock who have done nothing against India.

What an idiotic policy.

 

[Norwegian]

I hope its true. I really do. But these estimates never come true wrt Pakistan. For example: IMF predicted decline in GDP to -1.5% but Pak did at bit good and stuck at -0.4%. See, when they make an economic model to predict growths or decline on basis of historical data (most of the times), they take different variables and a change in any variable causes these estimates to get wrong.

Yeah it's just a tweet. It has no value. @Del

 

[Bil]

Yeah it's just a tweet. It has no value. @Del

LOL, I told you, then they have no way out then it becomes "just a tweet" from nobody, so who cares.

Let them continue with their denial, cuz you cant argu with

because for argument you need brain and some sense, which they dont possess.

 

[zn426]

A lot of people are noting that the improvement is due to debt relief.
Well, that's actually a positive. If you can delay payments while growing the economy, then you will be able to pay off the debt faster when the payments start coming due.
The slow growth in exports is due to structural inefficiencies, which take time to correct and resolve. Believe it or not, the poor relations with India have helped-Pakistani products which were sent to India for refinement and high are now getting shifted to Pakistan, as are products that would have otherwise been imported from abroad.
I am not saying it will get fixed overnight, but getting self-reliant is the first step. It looks like PTI has used the COVID pandemic as a chance to change the overall economic base and become an export-driven economy.

 

[HAIDER]

All is good, but the greatest issue is IPP... massive increase in power tariff ... killing poor people.

 

[Crimson Blue]

PKR now appreciated to PKR 153.74 per USD today.

 

[Crimson Blue]

https://twitter.com/x/status/1376827511930290177

 

[Crimson Blue]

Today, on May 10, 2021, PKR to USD exchange rate dropped to 152.30 PKR per USD.

 

[mourning sage]

We must keep the dollar artificially inflated. The economy is doing good and while a free floating dollar restores any pressures on the currency, it can affect our rapidly growing exports. We need to keep the dollar overpriced to achieve export led growth. Our exports are still struggling to remain competitive in the world.

Once we have hit 6% GDP growth, we can start to make it free floating again. But this constant rupee appreciation is not good. Though, I am sure the very competent team at the State Bank is keeping a close eye on this and will spring into action.

 

[Reichmarshal]

not true at all.

An overpriced dollar is no good for anything especially exports.
This results in high input costs making our product non-comparative in the international market. For our product to be truly competitive dollar exchange rate needs to be brought down to under RS 100 at around Rs70.
Tha will bring balance to our economy, what we are experiencing now is a bubble, which we will not be able to sustain in the long run unless we are able to bring the price of dollar down.

 

[zeeshe100]

Few days back dollar was at 150 pkr

 

[Patriot forever]

We must keep the dollar artificially inflated. The economy is doing good and while a free floating dollar restores any pressures on the currency, it can affect our rapidly growing exports. We need to keep the dollar overpriced to achieve export led growth. Our exports are still struggling to remain competitive in the world.

Once we have hit 6% GDP growth, we can start to make it free floating again. But this constant rupee appreciation is not good. Though, I am sure the very competent team at the State Bank is keeping a close eye on this and will spring into action.

Yep State Bank of Pakistan is managing it professionally. When the rupee hit a REER value of about 100 they started buying again the dollar appreciated a bit to 153 range, but the constant inflow from remittances, roshan digital brought it back to 152 range. SBP is targeting a REER value of 97-98 which is perfect balance for promoting exports.

Oh! So you seriously think IMF doesn't demand currency depreciation? LOL.

Bro IMF wanted us not to artificially manipulate currency and burn dollars in the process both in the form of directly inflating currency and running a massive deficit because of cheaper imports. Depreciation or appreciation does not concern them, all they want is market determined currency.

 

[Crimson Blue]

Yep State Bank of Pakistan is managing it professionally. When the rupee hit a REER value of about 100 they started buying again the dollar appreciated a bit to 153 range.

Just curious.... How do you know SBP started buying dollars when REER of PKR reached 100?

So it means SBP wants to keep dollar around range of around PKR 150 per USD for now?

 

[GumNaam]

as of today...

 

[The Accountant]

not true at all.

An overpriced dollar is no good for anything especially exports.
This results in high input costs making our product non-comparative in the international market. For our product to be truly competitive dollar exchange rate needs to be brought down to under RS 100 at around Rs70.
Tha will bring balance to our economy, what we are experiencing now is a bubble, which we will not be able to sustain in the long run unless we are able to bring the price of dollar down.

It is not the rate i.e. dangerous but the inconsistency and variance. If we keep it hovering around the current while keep on improving on trade deficits and reserves then this rate is fine. Both for exports and imports and most importantly for local production.