Wait...
  1. Home >
  2. Export Import News >
  3. Foreign Exchange >
  4. Pakistan's rupee is close to becoming the month's biggest loser >
  5. Pakistan's rupee is close to becoming the month's biggest loser

Online Export Import Data Search

Complete Training Video : Click Here

Pakistan's rupee is close to becoming the month's biggest loser.


Date: 31-05-2019
Subject: Pakistan's rupee is close to becoming the month's biggest loser
Pakistan’s rupee is vying for the title of the world’s biggest loser this month, the victim of an apparent devaluation with more pain ahead. 

The managed-float currency dropped more than 5 per cent in May and breached 150 per dollar, after the government agreed to another bailout by the International Monetary Fund that recommended a market-determined exchange rate. The central bank had devalued the currency five times last year. 

“This knee-jerk reaction of the market will continue,” said Kaiser Bengali, an economist who has helped previous governments in multiple roles including as the designer and first head of the cash-based social support program in 2008. “Given our large deficit and high debt ratio, the rupee will continue to decline. The rupee will be 200 a dollar by year-end.” 

Pakistan’s economy is going through a familiar boom-and-bust cycle; debt is soaring, inflation is rocketing, and reserves are falling after a deficit blowout. The IMF has long advocated Pakistan to loosen its grip on the rupee, and estimated the real exchange rate was overvalued by as much as 20 per cent in 2017. 

The central bank did not immediately respond to a request for a comment on the rupee’s performance. Earlier this month, it said the rupee level reflects demand and supply conditions in the foreign-exchange market, and that it will help in correcting market imbalances. 

Record Low

The rupee closed at 149.64 per dollar on Wednesday, according to the central bank. It touched a record-low 152.525 last week, according to data compiled by Bloomberg, and is among the worst performers globally in May together with currencies from Zambia and Haiti. The rupee has now erased almost a third of its value in the past 12 months. 

The central bank still intervenes but the currency is now more determined by market forces, according to three foreign-exchange dealers who requested not to be named since they are not allowed to speak publicly. 

Here are other comments on the rupee: 

Uzair Younus, South Asia director at Washington-based consultancy Albright Stonebridge Group LLC 

“It seems that the rupee’s value is still being managed, but the State Bank of Pakistan is not allowing imbalances to build up. The decision has been made to not allow the currency to remain overvalued for a long period of time.”
“I expect the central bank to be measured in its approach and intervene only when it’s absolutely necessary. The pressure on the rupee will continue and the central bank will allow it to depreciate further in the coming weeks.”

Ahmed Ateeq, head of treasury at Pak Brunei Investment Co. in Karachi 

The dollar/rupee is at a realistic level for the first time in two years
“We are close to real effective exchange rate” that is a benchmark used by the IMF
The rupee will hover around 150 for now but we may see a 5 per cent-6 per cent drop by year-end that is normal for a nation like Pakistan

Shahid Ali Habib, chief executive officer at Arif Habib Ltd. in Karachi 

Rupee is “very much fairly valued” so it is unlikely to see further devaluation
The currency will be more market driven, so there may be a bit more volatility on demand and supply though it will stay near this level
“When you go into IMF program, the central bank does not deploy its reserves to manage the currency. They will intervene to stop any speculation.” 

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 17-10-2019
Notification No.76/2019 - Customs (N.T.)
Exchange Rates Notification No.76/2019-Custom (NT) dated 17.10.2019

Date: 16-10-2019
Notification No. 57/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by DGRI - reg.

Date: 15-10-2019
NOTIFICATION No. 40/2019-CUSTOMS (ADD)
Seeks to impose anti-dumping duty on imports of Flat rolled product of steel, plated or coated with alloy of Aluminium and Zinc originating in, or exported from China PR, Vietnam and Korea RP.

Date: 15-10-2019
Notification No. 75/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg

Date: 14-10-2019
Notification No. 56/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by DGRI - reg.

Date: 11-10-2019
No. 04/2019- Customs
Clarification regarding inclusion of cesses, surcharge, duties, etc. levied and collected under legislations other than Customs Act, 1962, Customs Tariff Act, 1975 or Central Excise Act, 1944 in Brand Rate of duty drawback

Date: 11-10-2019
Notification No. 23/2015-2020
Amendment in Import Policy Condition of Urea under Exim Code 31021000 in the ITC (HS) 2017, Schedule-I (Import Policy)- regd.

Date: 11-10-2019
Notification No. 24/2015-2020
Amendment in import policy of Indian National Flag.

Date: 09-10-2019
Notification No. 53/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by DGRI -reg.

Date: 09-10-2019
Notification No. 54/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by DGRI -reg.



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001