US dollar jumps to Rs146.25 in open market

[VCheng]

lets hope for the best because he is the last hope for this country. if he fails and the country goes back in the hands of patwaris, jiyalas, mullah diesel and bilours pak will be worse then somalia. even today i am afraid of venezuela like situation in pakistan.

Aap ney ghabrana nahi hey.

 

[nahtanbob]

Slow poison... will make the assets price cheaper even... thus the penny-to-dollar fire-sale of SOEs...

EconomicHit 101.

The best option was to get those top 500 chorz and had checks signed within 2 months of taking office... the entire Pak Public was behind IK. Would have made him a true leader... but.....

Now... a legal robbery. Wah, wah... kia baat hai!

Your stupidity or naivette or belief in conspiracy theories is beyond belief

how does 20% devaluation make a big difference ? If I am a foreigner with deep pockets investing $300 million or $360 million to purchase some enterprise in Pakistan makes no difference. Devaluation hurts the income statement and investment of all the existing investors. They are wealthy and powerful too

@Dubious @ziaulislam @maithil

 

[pkuser2k12]

Dollar slides 2.25 rs and settles at 144 rs after government decides to crack down on Exchangers


After jumping to 146 rs Dollar slides to 144 rs with in hours

15-05-2019

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[Dubious]

Your stupidity or naivette or belief in conspiracy theories is beyond belief

please be civil and polite if you cant leave it to someone else with manners and patience to help explain!

 

[ziaulislam]

Your stupidity or naivette or belief in conspiracy theories is beyond belief

how does 20% devaluation make a big difference ? If I am a foreigner with deep pockets investing $300 million or $360 million to purchase some enterprise in Pakistan makes no difference. Devaluation hurts the income statement and investment of all the existing investors. They are wealthy and powerful too

@Dubious @ziaulislam @maithil

rupee has no value, its mean of transaction that should be as close as possible to reality..is this such a difficult concept for Pakistanis to understand

rupee is going to be stabilize briefly around 142-144 once final agreement is signed before that its going to go up and down due to speculation in open market.

afterwards its going to loose 3-4% yearly till productivity goes up and state bank lending goes down

we would never had this problem had rupee been slowly devlaued/kept at its orginal value in the last 5 years..infact i suspect today the rupee would have been much better at around 125-130 had we not wasted 20b $ in import subsidy

you are right but so far he has been unable to prioritize the problems of pakistan. he is wasting time and resources on relatively minor issues rather then the major ones. he hasnt started any project other then the improvment in railway which will earn some revenue for the government.

where is the money? currently govt is going through a crisis that 1200% worse than the crisis that led to PPPP ending up with IMF and doing 40%

yes, there are certain things that have /should have been done earlier especially on revenue side, agriculture, legal reforms(though legal reforms leader is saying they will be on hold till 2021 as PTI cant legislate due to non cooperation from senate) the fact that all legislation came through presidential ordinance simply proves thta

 

[nahtanbob]

please be civil and polite if you cant leave it to someone else with manners and patience to help explain!

I am sorry. I will be civil

rupee has no value, its mean of transaction that should be as close as possible to reality..is this such a difficult concept for Pakistanis to understand

rupee is going to be stabilize briefly around 142-144 once final agreement is signed before that its going to go up and down due to speculation in open market.

afterwards its going to loose 3-4% yearly till productivity goes up and state bank lending goes down

we would never had this problem had rupee been slowly devlaued/kept at its orginal value in the last 5 years..infact i suspect today the rupee would have been much better at around 125-130 had we not wasted 20b $ in import subsidy

One factor that determines the value of assets depends on how many bidders are there. I can see situations where a valuable asset is dumped in a fire sale because there are not any bidders or just one bidder

 

[slapshot]

So the interesting thing is that the Chinese government pegs the Yuan against the US dollar. In other words it fixes its own currency rate against the US dollar. And it has become the 2nd largest economy in the World.

Indeed! It all comes down to where you can keep it by force. We have seen US complaining to china about keeping their Yuan low against dollar intentionally. T

 

[ejaz007]

 

[ziaulislam]

Pakistan rupee would probably settle around 144-145 but it might hit 150 till deal is finalized and speculation ends but after wards i would expect it to losd3 -4% yearly (just like other regional currencies) translates into 30% loss over 5 years, 100% loss over 20 years. I.e it should be 180-190 by 2023

had rupee been kept independent and it lost 3-4% yearly since 1998 and more if govt isnt doing good(high lending) pakistani rupee would have been today at 70 rs..instead we keep rigid rupee for 5 years and even worse devalaution whe new govt comes at around 40-50%

so we saw shock from 30 to 60 in 1998
than 68-90 in 2008
than we saw another shock of 103 to 140

So the interesting thing is that the Chinese government pegs the Yuan against the US dollar. In other words it fixes its own currency rate against the US dollar. And it has become the 2nd largest economy in the World. Obviously the Clowns sitting in Pakistan think that Chinese are fools and don't want to follow the Chinese since they consider themselves some sort of economic genius.

Just look at the corrupt idiots in Pakistan's government and deep state, and they way they lick the boots of IMF. These people are despicable bunch keeping this Pakistan and its people hostage.

It intentionally does that to keep it self competitive ..it actually buys excessive fireigb exchange also kbown as building preserves ..the reason why china reserves are more than REST OF THE WORLD COMBINED

 

[slapshot]

Honestly Rupee has turned into a joke. Is this even going to stop somewhere?

 

[ziaulislam]

Honestly Rupee has turned into a joke. Is this even going to stop somewhere?

Because of peoples behavior ..nobody was asking PMLN govt why they artificially kept the rupee high caysing in end a bigger fall

Do you see indian rupee at same level since 1947..it was losing 2-3% /year while our currency was gaining..end of the day the amount if money spent to do that is doubled when returned(7% Interest 10 years maturation) so fall is twice as fast..

You need to have a 7% inflation and 2-3 natural loss if rupee to keep things in order and to promote savings

 

[Max Pain]

what is the solution?
will rupee ever reach 100 again?

 

[ARMalik]

what is the solution?
will rupee ever reach 100 again?

There are plenty of ways but it needs common sense which the Clowns sitting in so called Pakistan's leadership just do not have or they deliberately do it to further the agenda of Pakistan people and its economy being kept hostage.

So here is the thing, who are the speculators who drive up the price of the US dollar? These are mainly private exchangers, some of them are even being managed from overseas by the same foreign entities who provide US dollar loans to Pakistan! So how do you control these private exchangers? Well you make their life hell and heavily legislate them and control them and make example of them. In fact you go one step further and abolish licences and only issue dollars through state controlled outlets.

There are plenty of way but the corrupt donkeys sitting in the government and the deep state will never let this happen because they are pathetic and they religion is not Islam, it is Money.

 

[Riz]

Only our exporters will benefit most with this current rate of US$... This will help exporters to invest more in this sector

 

[maithil]

# Ghabrana nahi hai

PM forms body to control rupee devaluation