Why is the value of the dollar increasing despite receiving loans from the IMF and where will it stop?
Why is the value of the dollar increasing despite receiving loans from the IMF and where will it stop?
Former Prime Minister and Pakistan Tehreek-e-Insaf Chairman Imran Khan has criticized the current government's economic policies in his 'Address to the Nation' yesterday, saying that the nation was told that after settling matters with the IMF, Pakistanis The value of the rupee will not only stabilize but the value of the dollar will also go down, but on the contrary, the value of the dollar is increasing.
Imran Khan said that this journey of economic decline will continue until political stability is brought in the country and general elections are held.
It should be noted that in Pakistan, the value of the Pakistani currency against the US dollar has been continuously decreasing in the month of September and the price of one US dollar closed at 235.88 in the interbank market on Thursday.The increase in the value of the dollar in the month of September is being recorded at a time when the International Monetary Fund (IMF) loan program for Pakistan has been revived and under this 1.2 billion dollar loan to Pakistan. The episode has also been received.Out of the first 11 business days of this month, the price of the dollar has increased in ten consecutive days, while the price of the dollar has increased by more than 17 rupees during the first 15 days of this month.
On the other hand, the trend of increasing dollar price in the open market also continues and its price closed at a high level of 241 in the open market on Thursday.
According to experts in the economy and financial sector in Pakistan, there are local as well as international reasons for the increase in the value of the dollar, due to which despite the issuance of the IMF program, the decrease in the value of the dollar could not be recorded.
According to him, due to the current political instability in the country, deteriorating economic situation due to floods and some global reasons, there is no possibility of any reduction in the value of the dollar in the near future.According to him, due to the arrival of external financing, the value of the dollar may decrease for a few days, but due to the economic indicators and the general trends of the market, the value of the rupee is unlikely to increase.How much did the dollar increase in value?
In Pakistan, on August 29, 2022, i.e. the day of approval of the IMF tranche, the dollar closed at Rs 221.92. went
But instead of continuing this trend, the dollar once again started to move higher and closed at Rs 235.88 at the close of business on Thursday after gaining Rs 17.28 for ten consecutive days.
Since the 16th of last month, the price of the dollar has increased by 21.98 rupees in the interbank market, while the increase in the open market is 31 rupees.
What is the reason for the increase in the value of the dollar?
Fahad Rauf, an expert in financial affairs, while talking to the BBC, said that at the global level, the dollar index is increasing, that is, the value of the dollar is increasing compared to other global currencies, and its large The reason is the global economic situation.
He said that 'Inflation is increasing globally and there is also a recession due to which investors are giving priority to investing in dollars.'
"In the global market, the dollar appreciated against the euro, pound and Japanese yen, and regionally, the Bangladeshi taka lost a lot of value against the dollar this month."
Hud Rauf added that in such a situation, it becomes more difficult for Pakistan, whose economy is already weak and the dollar is in short supply, to maintain the value of the dollar.
He said that the strength of the global dollar has had a negative impact on the value of the Pakistani currency.
Commenting on the local reasons for the increase in the value of the dollar, Fahad Rauf said that "our economy is in a bad situation at the moment because dollars are less in the country, while Pakistan needs dollars for imports and external debt payments."
He said that more than one billion dollars were received under the IMF program, but compared to this, the inflow of dollars to Pakistan is less.He said that apart from taking loans from friendly countries and international financial institutions, Pakistan also borrows dollars from the global bond market to meet its external financing needs.
Also read this
Are the reasons for the continuous 'high flight' of the dollar political or economic?
Record rise in value of dollar by seven rupees in one day: What are the reasons?
Can Pakistan afford to borrow more?
What does the IMF finally want from Pakistan and how is the delay in the loan program affecting the country's economy?
It should be noted that in Pakistan, the value of the Pakistani currency against the US dollar has been continuously decreasing in the month of September and the price of one US dollar closed at 235.88 in the interbank market on Thursday.The increase in the value of the dollar in the month of September is being recorded at a time when the International Monetary Fund (IMF) loan program for Pakistan has been revived and under this 1.2 billion dollar loan to Pakistan. The episode has also been received.Out of the first 11 business days of this month, the price of the dollar has increased in ten consecutive days, while the price of the dollar has increased by more than 17 rupees during the first 15 days of this month.
On the other hand, the trend of increasing dollar price in the open market also continues and its price closed at a high level of 241 in the open market on Thursday.
According to experts in the economy and financial sector in Pakistan, there are local as well as international reasons for the increase in the value of the dollar, due to which despite the issuance of the IMF program, the decrease in the value of the dollar could not be recorded.
According to him, due to the current political instability in the country, deteriorating economic situation due to floods and some global reasons, there is no possibility of any reduction in the value of the dollar in the near future.According to him, due to the arrival of external financing, the value of the dollar may decrease for a few days, but due to the economic indicators and the general trends of the market, the value of the rupee is unlikely to increase.How much did the dollar increase in value?
In Pakistan, on August 29, 2022, i.e. the day of approval of the IMF tranche, the dollar closed at Rs 221.92. went
But instead of continuing this trend, the dollar once again started to move higher and closed at Rs 235.88 at the close of business on Thursday after gaining Rs 17.28 for ten consecutive days.
Since the 16th of last month, the price of the dollar has increased by 21.98 rupees in the interbank market, while the increase in the open market is 31 rupees.
What is the reason for the increase in the value of the dollar?
Fahad Rauf, an expert in financial affairs, while talking to the BBC, said that at the global level, the dollar index is increasing, that is, the value of the dollar is increasing compared to other global currencies, and its large The reason is the global economic situation.
He said that 'Inflation is increasing globally and there is also a recession due to which investors are giving priority to investing in dollars.'
"In the global market, the dollar appreciated against the euro, pound and Japanese yen, and regionally, the Bangladeshi taka lost a lot of value against the dollar this month."
Hud Rauf added that in such a situation, it becomes more difficult for Pakistan, whose economy is already weak and the dollar is in short supply, to maintain the value of the dollar.
He said that the strength of the global dollar has had a negative impact on the value of the Pakistani currency.
Commenting on the local reasons for the increase in the value of the dollar, Fahad Rauf said that "our economy is in a bad situation at the moment because dollars are less in the country, while Pakistan needs dollars for imports and external debt payments."
He said that more than one billion dollars were received under the IMF program, but compared to this, the inflow of dollars to Pakistan is less.He said that apart from taking loans from friendly countries and international financial institutions, Pakistan also borrows dollars from the global bond market to meet its external financing needs.
Also read this
Are the reasons for the continuous 'high flight' of the dollar political or economic?
Record rise in value of dollar by seven rupees in one day: What are the reasons?
Can Pakistan afford to borrow more?
What does the IMF finally want from Pakistan and how is the delay in the loan program affecting the country's economy?
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