Monday, November 15, 2021
Plummeting value: Pakistani Rupee, Turkish Lira, and Iran's Rial all face depreciation against USD
The Pakistani rupee has been falling against the US dollar in the interbank currency market for months.
This downward trend is a source of concern for the Imran Khan government because it indicates the country is facing a deeper economic problem, according to local media.
On Friday, the Pakistani rupee closed at 175.73 to the US dollar. Since May 14 and July 1, the rupee has lost 13.34 per cent and 10.35 per cent, respectively.The foreign exchange reserves of Pakistan have also decreased to USD 17.3bn from USD 19.2bn in early October. Even the delayed resumption of the IMF loan program is not helping the South Asian nation.
Additionally, so far this year, the Turkish lira has fallen by more than a quarter, making it the worst performer in emerging markets this year. It lost two-thirds of its value in five years, eating into the incomes of Turks along with double-digit inflation. As of Friday (November 12), Turkey's lira reached an all-time low of 9.975 against the US dollar.
During the past week, Iran's Rial has also declined by another 2.8 per cent, bringing its 6-month loss to 31.5 per cent. After former President Donald Trump's administration left the Joint Comprehensive Plan of Action (JCPOA), Iran's economy has suffered.
Pakistani rupee has been declining against the US dollar despite the State Bank of Pakistan's restrictions on imports and its purchase of greenbacks on the open market.According to Dawn, since no help from anywhere has been forthcoming, the rupee's downward trajectory is unlikely to reverse in the near future. A deal with the IMF is crucial in order to raise dollars through the international bond markets.
The government will continue to have to rely on remittances to meet its current account deficit and slow down the haemorrhaging of reserves built through past borrowing until fresh (borrowed) dollars arrive from somewhere.
In normal circumstances, currency depreciation is nothing to worry about. Due to high inflation and other economic factors, currencies are constantly adjusting their prices downwards.This helps a country's exports remain competitive on international markets, increases domestic production, and stimulates economic growth.However, a steep fall in a currency's value, such as the Pakistani rupee's of late, reveals far deeper economic problems: low productivity, limited export options, high import dependence, rapid/galloping price inflation, etc.
Exchange rates are a country's first line of defence against external shocks, and how long they can hold up under relentless pressure is uncertain.
https://www.wionews.com/world/plummeting-value-pakistani-rupee-turkish-lira-and-irans-rial-all-face-depreciation-against-usd-429419
#Pakistan - On #InternationalToleranceDay, PPP Chairman Bilawal Bhutto Zardari describes strengthening of democracy as only path to promote tolerance
Chairman Pakistan Peoples Party (PPP) Bilawal Bhutto Zardari has said that the only way to promote tolerance and patience in Pakistanis society lies in strengthening democracy.
Bilawal Bhutto Zardari urged that the need to promote inter-sectarian and interfaith harmony in the world, as it is today, has hardly been felt in the past. “The elimination of biasedness, in all forms and at all levels, besides the adoption of tolerance and moderation can lead to the formation of a global society based on the principles of peace, equality and coexistence,” he maintained.
Chairman PPP pledged that Pakistan Peoples Party will make Pakistan the cradle of tolerance in the light of the vision of Quaid-e-Azam Muhammad Ali Jinnah, the ideology of Quaid-e-Awam Shaheed Zulfikar Ali Bhutto and the philosophy of Shaheed Mohtarma Benazir Bhutto as this is the struggle our Party has been pursuing since the very first day of its foundation.
https://www.ppp.org.pk/pr/25777/