Is it the right time to exchange PKR to USD?

[Mian]

I was wondering if it's the right time to keep USD and exchange PKR?

According to many reports rupee is going to devaluate hard in the next 12 months. Thanks to Fiance Minister Dar wisdom of keeping the exchange rate at around 100 for 4 years. Trade deficit for this quarter is $8.44 billion. Loan repayments start next year. Exports are on decline and we are under massive debt.

According to many economy experts Pakistan will have have to devalue currency soon.

Any thoughts?

 

[Napa]

I do not know the trade deficit number, but if it is true then your apprehension about the devaluation of the PKR is well founded. With a currency reserve of only $20 billion, no new foreign exchange earning industry, and an existing trade deficit, PKR can only be headed down.

 

[Mian]

I do not know the trade deficit number, but if it is true then your apprehension about the devaluation of the PKR is well founded. With a currency reserve of only $20 billion, no new foreign exchange earning industry, and an existing trade deficit, PKR can only be headed down.

According to State Bank of Pakistan last week report only $14 billion are left in the reserves and we don't even have money for next 3 months imports. Govt already imposed more in-direct taxes on consumers last week. Loan repayments are also starting from the beginning of next year. I can see us running again to IMF or Chinese to help us out. IMF even denied to meet our current fraudya finance minister (Samdhi of Nawaz Sharif) because of his lies. He is also facing a trial right now because of money laundering for Nawaz Sharif. If he had any grace left he should have resigned already.

 

[GBK_Fan]

Isn't Pakistan slated for an election next year? Given the inflationary pressure of currency devaluation, I doubt you would see voluntary action from the government. That said the role of currency valuations, considering the lack of fiscal policies will have any substantial positive effect for the economy

 

[Black Zero]

yes, it's a right time.

 

[WebGuru]

The report also stressed the need to devalue the rupee against the US dollar, saying an overvalued currency severely damaged the exports.

The limited exchange rate flexibility may have contributed to higher imports and the widening trade deficit.

Source: https://tribune.com.pk/story/155434...oeconomics-conditions-significantly-worsened/

 

[WebGuru]

I guess it's happening

http://www.pakpassion.net/ppforum/s...-with-IMF-Pakistan-agrees-to-depreciate-rupee

 

[KB]

Economists in Pakistan appear to be divided on whether devaluation will benefit the economy or not. Some suggest that it could in fact worsen the economic outlook. This view is based on the nature of Pakistan's imports which are are deemed to be not so responsive to price increases due to lack of domestic substitutes. On the export side, they question whether Pakistan has the capacity to increase production. The reduction in purchasing power that hits citizens with devaluation as well as the increase in debt servicing denominated in foreign currencies are other factors that would adversely impact the economy. For a recent article that argued along these lines, see https://www.dawn.com/news/1356963

An alternative perspective is that the rupee is undoubtedly overvalued and the current trade deficit renders it necessary to devalue the currency gradually over time. Overvaluation has caused harm to domestic producers as they cannot compete with cheaper imports. They point to the experience of the 1980s where the reduction in the real exchange rate coincided with increased output and exports, without inducing crippling inflation. For a recent article putting forward this perspective, see https://www.dawn.com/news/1367119

 

[big_gamer007]

So [MENTION=142451]Mian[/MENTION] did you exchange? How much profit in PKR are you slated to make if this happens?

 

[maxamax]

Economists in Pakistan appear to be divided on whether devaluation will benefit the economy or not. Some suggest that it could in fact worsen the economic outlook. This view is based on the nature of Pakistan's imports which are are deemed to be not so responsive to price increases due to lack of domestic substitutes. On the export side, they question whether Pakistan has the capacity to increase production. The reduction in purchasing power that hits citizens with devaluation as well as the increase in debt servicing denominated in foreign currencies are other factors that would adversely impact the economy. For a recent article that argued along these lines, see https://www.dawn.com/news/1356963

An alternative perspective is that the rupee is undoubtedly overvalued and the current trade deficit renders it necessary to devalue the currency gradually over time. Overvaluation has caused harm to domestic producers as they cannot compete with cheaper imports. They point to the experience of the 1980s where the reduction in the real exchange rate coincided with increased output and exports, without inducing crippling inflation. For a recent article putting forward this perspective, see https://www.dawn.com/news/1367119

Devaluing is ONLY going to benefit few corrupt traders. Those who are not letting innovative Ideas grow to keep their stone-age ship sailing. IT WONT DO GOOD TO ANYONE ELSE, LET IT BE ECONOMY OR PEOPLE OF PAKISTAN.

My family earns in dollars, devaluing is going to make their earning more worthy. But if I am saying this, it means that its really harmful for Pakistan.

 

[Mian]

So [MENTION=142451]Mian[/MENTION] did you exchange? How much profit in PKR are you slated to make if this happens?

I was confused at that time i wish i had done it. Those who did it are now enjoying 20% to 25% profit

 

[Abdullah719]

Is it the right time to change USD to PKR

 

[Angrez Pakistani]

There’s never a wrong time.

 

[Manager101]

That's the worst aspect of paper currency ecocomical setup, it is utterly fraudulent and bogus. The era of gold and silver coins had all the ingredients of real free market with minimum chance of inflation. For examples, during that time if your great great grandfather had left 50 gold coins as inheritance, its value would be relatively similar even after 100 years.

 

[zeusathon]

The way its falling, it wont be long when its gonna die like Zimbo Dollar. Exchange them ASAP!