State Bank of Pakistan increases interest rates to 12.25%. Shift saving to Pakistan and get more

[ziaulislam]

as i said ideally interest rate should 8-10%..PMLN artifcally depressed the rates ..why? well the answer is ishaq dar is a genious..

he was given a task.."i need revenues" said Mr sharif..

what should we do? well artificially decrease interest rates so you can have big chunk of interest payment saved,this will also discourage high risk private lending too..artificially decrease inflation and dollar parity.. net result you have limited time high money..till saving goes down and you are hit in a CAD crisis but who cares

I thought it was 146 currently.
Projected prices are forecasts, and mayn't come true. You can look up the various sites that deal with projected values.
I found the projections to be at roughly 166 by year end.

You can look it up, or I can post links.

sounds about right.. it would stay around 145-150..than loose 3% per year(5-6/year)

 

[BHarwana]

I thought it was 146 currently.
Projected prices are forecasts, and mayn't come true. You can look up the various sites that deal with projected values.
I found the projections to be at roughly 166 by year end.

You can look it up, or I can post links.

State bank has set the price at 149 if anyone sells higher he will be picked up so dollar not going to go up now. Forget projection and read the summery.

https://twitter.com/x/status/1130418957297627136

 

[ziaulislam]

State bank has set the price at 149 if anyone sells higher he will be picked up so dollar not going to go up now. Forget projection and read the summery.

https://twitter.com/x/status/1130418957297627136

problem is indian rupee was 44 and Pakistani rupee was 98..(2.2:1)
than what happened..

pakistan rupee remained at 110 and indian rupee went to 70(1.5:1) despite they have higher productivity

the rupee has just now hit it real effective rate but this is moving boundary for country which has so high state bank lending(printing notes)

 

[prashantazazel]

State bank has set the price at 149 if anyone sells higher he will be picked up so dollar not going to go up now. Forget projection and read the summery.

https://twitter.com/x/status/1130418957297627136

These are current rates. I'm not sure the state bank will burn dollars to maintain these rates at current level.

 

[alimobin memon]

Change Pakistan notes so that people bring back cash to Pakistan and deliver to banks for new notes. especially 500, 1000 and 5000 notes.

 

[Sugarcane]

Bhai maar tu tum bongi rahay ho, but I like your optimism and resolve of finding positive from every negative.

 

[Yaseen1]

it is not good decision as it reflects govt has increased interest rates to deal with time value of money which has decreased as dollar has become expensive against rupee but this high interest rate is unIslamic and will further reduce economic growth and will promote unemployment and inflation as it becomes much costly for new businesses to borrow money and undergo new startups

 

[kris]

Now if currency depreciates by 10% in the coming year (which is a very conservative figure), then your effective yield is just 2.5%.

Why not invest in Argentine bonds then?

Good point....
But increase in savings interest will have impact on commercial interest loans.

How can pakistan economy handle this??

 

[maithil]

SBP discount rate is 12.5 %. Lending to Consumers will be at least 16-17%. Perfect way to improve business sentiment.

 

[KhanBaba2]

Bharwana has a unique ability to put a positive spin on any economic condition.

 

[Trango Towers]

https://twitter.com/x/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

Come on bro.
Interest rate 12.5 percent and by how much did the current devalue. Will u make money? And the religious police will say interest is haram too.

 

[Möbius Curve]

https://twitter.com/x/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

Much laudable step. Time to reap the harvest!

 

[ARMalik]

https://twitter.com/x/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

The reason the interests rates are low in UAE, UK, Australia, USA and so on have to do with CREDIT/US Dollar availability. The US dollar is freely available in these countries due to US Fed Reserves printing Trillions of Dollars due to Quantitative Easing. These dollars then made they way to UK, Australia, NZ, UAE, Western Europe and so on. As a consequence, the interest rate fell in these countries since Banks had to lend this money and the only way to do this is to lower interests rates.

Whereas in Pakistan and even in Turkey, the US Dollar was available a few years ago but then the dollar supply was CHOKED by the US. Hence the US Dollar is in short supply in these countries and the Central Banks of these countries are FORCED to increase interest rates to attract US Dollar and other currencies. Turkey is in exactly the same boat.

So although you are technically correct that this increase in interest rates is to attract investments, the real reason is the "shortage of US Dollar".

 

[War Thunder]

https://twitter.com/x/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

Good good, we are doing great with our war against The Creator almighty, and making progress in our defiance and ignorance.
We are definitely a state made for Islam, by supposed Muslims, and we are definitely a state under protection of the Almighty (anyone who claims this, I hope you can feel some shame)

I'm pretty sure this is going to help us do better as it always has ...

 

[AZ1]

Is it possible to ban money exchanger to deal with dollars and only bank can exchange dollars?

Also restrict $ to $2,000 per person going outside Pakistan as cash.