Rupee devaluation in Pakistan? Currency drops most in 9 years

[Ryuzaki]

Pakistan’s rupee plunged the most in nine years, after the central bank was said to have devalued the currency as South Asia’s second largest economy showed signs of stress ahead of elections next year.

The rupee fell 3.1 per cent to 108.1 against the dollar at 2:29 p.m. local time on Wednesday, the lowest level since December 2013, according to data compiled by Bloomberg. The move was a “long overdue” devaluation, Karachi-based Topline Securities said in a research note. State Bank of Pakistan spokesman Abid Qamar declined to comment.


Read more at:
http://economictimes.indiatimes.com/articleshow/59457080.cms

 

[Skull and Bones]

It's good for a msnufacturing economy, with CPEC, Pakistan will be manufacturing power house.

 

[VCheng]

It's good for a msnufacturing economy, with CPEC, Pakistan will be manufacturing power house.

Given the economy's fundamentals. the PKR will average about 10% annual decline in value averaged over longer periods of time, short term interventions notwithstanding.

 

[Kapwercs]

Now Pakistan is the 2nd worst in saarc region .
Dollar rates
Inr 64.8
Bhutan 64.8
Sri Lanka 150
Bangla 80
Nepal 103
Afghan 68.3
Pak 108

 

[Rajaraja Chola]

Now Pakistan is the 2nd worst in saarc region .
Dollar rates
Inr 64.8
Bhutan 64.8
Sri Lanka 150
Bangla 80
Nepal 103
Afghan 68.3
Pak 108

Lol. Actually better than India. I remember PKR at 2 for every one INR. But INR have devalued too much in effect helping economy. INR is officially greater than Yen and Won, but doesnt mean Indian GDP is greater than them.

I feel PKR is kept artificially high which needs to lessen it down for its exports to work.

 

[Kapwercs]

Lol. Actually better than India. I remember PKR at 2 for every one INR. But INR have devalued too much in effect helping economy. INR is officially greater than Yen and Won, but doesnt mean Indian GDP is greater than them.

I feel PKR is kept artificially high which needs to lessen it down for its exports to work.

You are totally wrong.
A world Bank report last month said the Pak rupee is Overvalued by 25 %. Not undervalued.

If I remember the pkr until 90s was stronger than inr.

And a weak currency is helpful for a totally export driven economy like china not a country like India which always has a trade deficit.
Better to have a little stronger currency and cheaper imports.

 

[Rajaraja Chola]

You are totally wrong.
A world Bank report last month said the Pak rupee is Overvalued by 25 %. Not undervalued.

If I remember the pkr until 90s was stronger than inr.

And a weak currency is helpful for a totally export driven economy like china not a country like India which always has a trade deficit.
Better to have a little stronger currency and cheaper imports.

First we need to attract foreign companies to invest in India to manufacture. They will only invest if India is price competitive compared to other countries like Vietnam or Thailand. If we dont offer that competitive price, then its tough to get investment, and to actually have an export more than import.

When India achieves Parity, or when exports become more than imports, then naturally our INR will become stronger.

 

[Mo12]

It's good for a msnufacturing economy, with CPEC, Pakistan will be manufacturing power house.

its bad for cpec, as Pakistan is buying all its machine etc from China.

 

[bafxet]

I would like to know that if the budgetary deficit is under 5% of the GDP and inflation well around 4%. Why do we need to devalue the rupee. It's a fact that there is no correlation between the devaluation and the boosting exports.

 

[American Pakistani]

What else will happen when looters and corrupts are running the economy of this country.

 

[Śakra]

The loan repayments are going to get all the more difficult.

 

[protest]

Nominal gdp goes down by 3 % overnight as well.

 

[Nanga Tarzan]

Check out the big Mac index which tracks exactly these things.

http://www.economist.com/content/big-mac-index

 

[Sliver]

dint china used to do this - keep on devaluing their currency to keep their manufacturing/exports competitive? guess someone got some knowledge on that,

 

[Max]

rupee gained its value back today, Finance minister have asked for investigation. he believe rise was artificial.