Pakistan Economic Crisis: Pakistan is going through a severe economic crisis. The country’s economy has completely deteriorated. Inflation is so high that people have to think for bread till June 2. There is a huge shortage of Foreign Exchange Reserves. Meanwhile, the period of decline in Pakistan Rupees against the dollar continues. The Pakistani rupee has fallen to 276.58 against the dollar.
Dr. Krishnamurthy Subramanian, Executive Director of IMF, has shared a chart regarding the fall in Pakistani rupee.
Is the Pakistani rupee beaten further after demonetisation?
IMF Executive Director Dr. Krishnamurthy Subramaniam has shared an interesting chart of January 18 on social media. According to this chart, at the time of Demonetisation in India, the Pakistani Rupee was in a strong position. Although even then the Pakistani rupee was weak in comparison to the Indian rupee. After demonetisation, the Indian Rupee reached a very strong position against the Pakistani Rupee.
Pls look at this really interesting chart on the performance of the Pakistani Rupee vis-a-vis INR pre- and post Demonetisation. Slope is decreasing till Nov 2016 when Demonetisation occurred. After that, slope is consistently positive, ie depreciation wrt INR!!?? pic.twitter.com/nVFlQtgETW
Dr. Krishnamurthy Subramanian (@SubramanianKri) February 3, 2023
Fall in Pakistani rupee
Currently, the value of one Indian rupee against Pakistani rupee is Rs.3.34. However, later on being asked by social media users, Krishnamurthy Subramaniam has clarified that he has shared only one interesting fact. He has not cited demonetisation as the reason for this. Subramaniam also said that serious study would be required to understand its reasons.
Why is the value of Pakistani rupee decreasing?
According to the State Bank of Pakistan (SBP), on Friday (February 3), the dollar traded at a record high of Rs 276.58 in the interbanking currency market. According to official data, earlier on February 2, the US dollar had closed at Rs 271.36.
According to Reza Baqir, former governor of State Bank of Pakistan, the decline in the country’s foreign exchange reserves, reduction in exports are directly affecting the value of the Pakistani rupee.
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