As per the report shared by the State Bank of Pakistan, the value of the Pak Rupee against the US Dollar is deprecated by .85% at the start of the new week on Monday 15 May 2022.
The dollar is continuously appreciating against Pak Rupee and no efforts to control the momentum are bringing fruits.
Miftah Ismail the finance minister after his visit to the UK to meet and discuss the finance-related matters with ex-finance minister Ishaq Dar and Ex-PM Nawaz Sharif called on the meeting of all heads of foreign exchange companies to formulate a strategy to halt the increasing value of the dollar against PKR.
When the last Govt of PTI stepped down on 8th April 2022, the dollar rate was 188.18 which suddenly came down to 184.68 resulting in a dollar depreciation of 1.90% against PKR.
But later on the dollar started taking upward momentum and today stands at 194.18.
As per the speculations, the dollar may touch Rs.200 within a week or two.
There are certain reasons behind dollar appreciation against PKR.
The new Govt is not yet stable and political uncertainty is the major cause of dollar appreciation in the country.
Govt has not locked its deal with IMF yet to enhance dollar inflow in the country to stabilize the economy and dollar price.
Pakistan liquid reserves are also decreasing majorly due to loans in principal and interest payments.
As the dollar flew out the supply of the dollar decreased and the demand is increased which results in dollar appreciation.
It’s also a common phenomenon that when in such a situation happens people intend to buy the foreign currencies, especially dollars which ultimately increased the price of the dollar and devalues the local currency.
Govt need to take strong and durable decisions to halt the dollar price otherwise it may cause big inflation in the country.
A more stable Govt and certain political conditions may also help control the dollar price.