Worth of rupee slip against dollar

Pakistan is a country where the burden of payments and debts are the factors that determines the market-driven exchange rates. The pattern of foreign trade growth also plays a vital role in this regard. A country which does not have sufficient foreign exchange holdings, the above mentioned two factors can be threatening for such an economy. We have seen a sudden change in Pakistan’s market economy when import payment’s scale is increasing upward since March following a passive growth in the last eight months.

Since four months, after the announcement of fiscal year budget in June 2013. The average imports monthly are $4.135 billion. On the other hand, export earning average $1,976 billion monthly. So the graph of external payments is still higher. So this factor determines the currency exchange rates. “So, the timing is important,” said the chief forex dealer at a foreign bank. “We had such a large trade deficit on the one hand and on the other the country also made about $1.5 billion external debt payments (mostly to the IMF) during this period.” A senior expert says that this has been a major factor that determines currency exchange rates. This is how rupee is slipping against the dollar. “If you’ve got to do big external debt servicing, often several times in a month, and with not much in forex reserves, exchange rates will remain under pressure.

Things become even more difficult when imports rise suddenly,” said a central banker. The situation is quite threatening, when market come under the attack of speculation. The interbank rates and open markets have difference in determining the value of rupee. When news of unrest spread into the market, the exchange rates show the ups and down conditions, thus jolted. So there left no purchasing power equivalence between rupee and dollar. Open market currency rate in Pakistan is calculated by banks and cited to the importers and exporters as a pre-indication of the future move of the exchange rate. For instance on June 28, the average rate of one-month dollar and rupee exchange was 100. It denotes that rupee has fallen to 99.66 per dollar at the end of the month of june to 100 by the end of July.

But rupee has lost its value very earlier. Thus identifying the uncertain market condition that could change the external account situation is quite challenging. But interbank se4rvices are doing their utmost effort in this regard. By comparing the past working day, thus incur the forward rate that is helpful for importers and exporters. “This mechanism of forward rate quotations has enabled the inter-bank market on the whole to make more realistic projections of exchange rates,” said the treasurer of a large local bank.

Little Chit Chat about Biz n Pak

Pakistan, well, nothing is going in its favor. For the last decade or so, evil has terribly seized our 2 E’s – Energy and Economy, not to mention extremism. Obviously nobody in his safe mind prefers investing here. Or Do they? OECD placed Pakistan in line with Bangladesh, Myanmar and Niger as ‘Fragile States’. FATF declared Pakistan as ‘High Risk’ and Non Cooperative jurisdiction’. Very meanwhile, our Finance Minister, yesterday at Pakistan Business Seminar in Dubai, broke, ‘We are back in business and are on quick track to recover from economic hit down’. 

While addressing with businessmen, investors and expatriates, he insisted them to invest in Pakistan as there are huge huge huge attractions and opportunities arising ahead.Perhaps, we should not worry over OECD or even FATF. Who buys their shit, all they care is IMF. If so, IMF had put a bit good words on to our condition. IMF said, Pakistan has met all of her quantitative performance markets, showing its economic recovery which remains broadly on track. Thus, we can see business news. Among all bombs, deaths, riots and break ins, live currency rates keep showing that Pakistani Rupee stood stable against dollar and euro in the. Pakistan currency is quite a funny thing, honestly speaking. Like a tall grown bamboo tree, it’s continuously getting hollow, shallow and sleepy. Anyways, still it’s ours.

King Abdullah Instructions Punishing Saudis Involved in Militancy Abroad

RIYADH:On Monday, Saudi Arabia’s King Abdullah issued a royal decree that punishes citizens who fight in conflicts outside the kingdom, with prison sentences ranging from three to 20 years in jail.

The spoke person said that the Saudi Royal Court also says that any Saudi citizen who joins extremist terrorist groups or supports them materially or through incitement would face an even harsher punishment ranging from five to 30 years in jail. The decree appeared aimed at stemming the flow of Saudi fighters going to Syria. The region’s civil war is believed to have drawn hundreds of young Saudis, worrying some in the kingdom that fighters could return radicalized and turn their weapons on the monarchy. Many young Saudi men appear to have been encouraged to join the fight in Syria by influential Saudi clerics who follow the kingdom’s ultraconservative religious Wahhabi doctrine and view the war as a struggle between Syria’s Sunni majority and President Bashar Assad’s Alawite, Shiite-backed minority. The uprising against Assad has transformed into a regional proxy war between Iran and Saudi Arabia, which support opposing sides. Foreign fighters and extremists have infiltrated the opposition; triggering infighting that has undermined the rebellion. The decree comes after a sweeping new counterterrorism law came into effect in the kingdom Sunday that activists say targets virtually any criticism of the government. “This disturbing new law confirms our worst fears – that the Saudi Arabian authorities are seeking legal cover to entrench their ability to crack down on peaceful dissent and silence human rights defenders,” said Said Boumedouha, Middle East Deputy Director at Amnesty International.

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Obama says the U.S. must Remain Vigilant against al-Qaida

WASHINGTON: President Barack Obama says the U.S. must remain vigilant against al-Qaida as the terror network takes root across the Mideast and North Africa.

The president said during his State of the Union speech Tuesday that America can no longer expect to be safe by pursuing overseas terror networks through war — or even through widespread airstrikes that have been a hallmark of the U.S. fight against extremists. He said extremism in places like Yemen, Somalia, Iraq and Mali will best be defeated with help from foreign allies and through targeted operations and limited use of unmanned drones. Obama also called on Congress to lift restrictions on transferring al-Qaida and Taliban detainees held at the U.S. military base at Guantanamo Bay, Cuba, and finally close the prison.

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