Markets respond to dumb general's misadventure!

Erectus

Politcal Worker (100+ posts)
There are two main reasons for this free fall of PKR against the US dollar.
(1) Political uncertainty; and the credit goes to duffer generals.
(2) Illegal capital flight; ever since these thugs came to power, large-scale money laundering has started again.


Rupee slides to record low of Rs226 against USD​

Panic in the market is primarily due to political turmoil, which will subside in a few days: Miftah



News Desk/ReutersJuly 20, 2022

photo file

PHOTO: FILE

KARACHI:
The rupee's downward spiral continued on Wednesday for the third consecutive day as it plunged by Rs4 against the greenback and was being traded at Rs226.51 in the inter-bank market.
The rupee fell 2% on Monday, and 3% on Tuesday, despite last week's staff level agreement reached with the International Monetary Fund (IMF) that would pave the way for a disbursement of $1.17 billion under resumed payments of a bailout package.
The current downturn of the rupee against the US dollar was not due to economic fundamentals, but because of political turmoil, Finance Minister Miftah Ismail said.
"The panic in the market is primarily due to political turmoil, which will subside in a few days," Ismail told Reuters, adding that he expected pressure on the rupee to fall in the next few days.

"There is panic in the market, I fear it (the rupee)will go down further," Zafar Paracha, Secretary General of a foreign exchange association, the Exchange Companies of Pakistan, told Reuters. Paracha said he did not see any reason for the depreciation in the rupee other than a possible IMF pre-conditions.
Neither the government or the IMF have said anything about the need for any further depreciation of the currency, though Pakistan recently adopted a market-based exchange rate under advice from the IMF under the economic reforms agenda.
"The recent movement in the rupee is a feature of a market-determined exchange rate system," the State Bank of Pakistan said in a series of Twitter posts late Tuesday night, adding that rupee's depreciation against the dollar is in large part a global phenomenon.

Economic winter sets in
The State Bank of Pakistan on its official Twitter handle said: “The recent movement in the rupee is a feature of the market-determined exchange rate system. Under this system, the current account position, relevant news items, and domestic uncertainty together determine daily currency fluctuations.”

Recent rupee depreciation against the US dollar is also a part of a global phenomenon.
“Globally, the US dollar has surged by 12% in the last six months to a 20-year high, as the Fed has aggressively raised interest rates in response to rising inflation,” the SBP said.
The free fall of the Pakistani currency accelerated after Fitch Ratings downgraded the country’s credit rating outlook to negative from stable before domestic financial markets opened, BMA Capital Deputy Head of Research Abdul Rehman told The Express Tribune.

The global credit rating agency revised its outlook on Pakistan even though it strongly expected the revival of the IMF loan programme for Islamabad soon. It, however, still found Pakistan short of foreign funding against its high requirement amid rising political temperatures and economic meltdown in the country.

Sources:
https://tribune.com.pk/story/2366858/rupee-slides-to-record-low-of-rs226-against-usd
 

Khallas

Chief Minister (5k+ posts)
Serious supply & Demand imbalance,

Open Market mein large transaction k liya dollar available nahin hai.

Zardari sara paisa Dubai lay kar ja raha hay Humari Mohib-e-Watan army sattu pee kar so rahi hai, sonay do.
 

samisam

Chief Minister (5k+ posts)
باجوے اور اس کے چار پانچ جرنیلوں امریکہ انڈیا اور اسرائیل اور سیاسی اور مولوی حرامی گٹھ جوڑ زلیلُداری فضلو نون لیگ کی سازش رجیم چینج انڈے اور بچے دے رہی ہے۔ در لعنت
 

miafridi

Prime Minister (20k+ posts)
The longer the corrupt PDM beggars stay the more damage will be done to the economy because economy doesn't perform well during political instability.
 

saqibmkhan

MPA (400+ posts)
I have no hesitation in saying that no intelligence services of any country in the world will ever allow a foreign or internal conspiracy or intervention by internal traitors to topple its highly competent, honest, sincere, patriotic, able & visionary leader & remove his most efficient government successfully leading the country to economic, industrial, agricultural unless its high command is involved in it. It is considered a betrayal of loyalty to the motherland and a heinous treasonous act that deserved nothing but the death sentence by a firing squad for the conspirators.

I honestly believe that when Imran Khan becomes the next prime minister (In Sha Allah), he must set up a people's court (awami adalat) consisting of honest, sincere, and patriotic Pakistanis of reputable distinction to investigate the foreign-funded conspiracy that toppled ex-Prime Minister, Imran Khan from his office. And, those found guilty were sentenced to death.
 

Usman Afzal

Politcal Worker (100+ posts)
It's all because someone wants to remain till March and if Khan was there, he'd have a big influence on the players. Definitely, he was active and well-informed, but he put his own interests ahead of those of his country.



He'll take off sooner or later; he has no intention of remaining.
 

Lubnakhan

Minister (2k+ posts)
I wish media is creating unnecessary hype!

Why does no political party is ready to ever sit in opposition!! Some one has to fill opposition benches, isn’t it?
 

disgusted

Chief Minister (5k+ posts)
Bhagori and Kukri will be fighting for who gets into the plane first. The plane will leave with Panto-gone Abbassi leaving the Jati-mujrah residents on the tarmac.
 

thinking

Prime Minister (20k+ posts)
Sooner or later.. Many will flee specially those who are Criminals...Jo na jaa sakay..un k muqadar m jail hi gi..
 

tahirmajid

Chief Minister (5k+ posts)
aisa kuch bhi nahi hay, hakomat ager change bhi ho to itni juldi kisi ko arrest nahi kia jata keh us ko faraar hona parey
 

Siberite

Chief Minister (5k+ posts)
??????

لو جی۔ اس بگڑ بلے کی بھی سن لو ۔

جو خود پہلی فرصت میں جہاز پکڑ کر عمرے کے بہانے فرار ہوگیا ۔

ساری زندگی بوٹوں کی پالش کی کمائ کھاتا رھا۔

آخری لقمے پر اکڑ گیا ۔ ۔ اب حکیم لقمان بن بیٹھا ہے ۔