Whats the matter?

[Nav]

Guys , today i just checked forex rates & and compared to pakistani currency 95% of currencies have higher exchange rate with pakistani rupee , only indonesian rupee, iran & iraq currencies r below then pkr. Even afghani is stronger then Pkr. I want to knw why we are so behind from the world?
Source:
http://www.forex.pk/international-forex-news.php

 

[sparklingway]

Guys , today i just checked forex rates & and compared to pakistani currency 95% of currencies have higher exchange rate with pakistani rupee , only indonesian rupee, iran & iraq currencies r below then pkr. Even afghani is stronger then Pkr. I want to knw why we are so behind from the world?

Do you think exchange rates symbolize economic development? Or even that there is a direct correlation between socio-economic indicators and foreign exchange rates? (I'm talking about values and not historical trends, changes and variations which of course are inexplicably tied to economic stability)

I am not surprised at this since even our erstwhile "famous" journalists and "educated" people suffer from prolonged and sometime lifelong bouts of economic illiteracy (not to be offensive but that's the only word applicable).

 

[Nav]

Sir, what are the basic things which decide between two currencies , if its ont economy?

 

[Awesome]

Sir, what are the basic things which decide between two currencies , if its ont economy?

The stability of exchange rates is more important than how it fares against the dollar.

However in Pakistan's case, in the past 20 something years the currency has fallen more than 100%. That is what makes the situation so unstable.

 

[sparklingway]

Sir, what are the basic things which decide between two currencies , if its ont economy?

I do not study economics professionally. However, I can identify basics to a bad extent:-

Is the currency fixed (i.e. pegged to another currency) or is it a floating exchange rate?

Is the country's central bank maintaining a tight or a fairly liberal monetary policy?

Is the nation-state suffering a balance of payment crisis?

Does economic stability suggest demand in the foreign exchange market?

In the end financial fragility, deficits and and monetary policies are the major factors.

As you stated only three currencies, perhaps you'd like to see the Japanese Yen. That might give you a shocker.

 

[Nav]

A brief view of pakistan economy can found at link given below :
Definitions Country Codes geographic.org Courty Profiles - Flags, Maps, Economy, Geography, Climate, Natural Resources, Current Issues, International Agreements, Population, Social Statistics, Political System