So the dollar is now going for 64 rs


#1

i just saw in the newspaper that the dollar is now almost 64rs>>i was wondering what effect this would have on the computer hardware being sold in pakistan>>>and how can this be stabilized


#2

try 65.. thats the open market rate.


#3

[quote=", post:, topic:"]

try 65… thats the open market rate.
[/quote]

Too bad I’m not receiving any USD for 2-3 weeks :confused:

Computer hardware, when imported using USD, will obviously get expensive. I better leave the job of currency rate stabilization to the economists though. :lol:

Well I wonder if they have intentionally let the devaluation occur to boost exports sighting the big balance of payments and current account deficit (perhaps the rising price of oil only adds to it).


#4

Well I wonder if they have intentionally let the devaluation occur to boost exports sighting the big balance of payments and current account deficit (perhaps the rising price of oil only adds to it).

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the interim government minister responsible for this was a mill owner and he increased the dollar rate by 2 rs from 60 to 62 rs>>during musharaf govt for 8 years the dollar remained at 60 rs


#5

the DOLLAR is currently getting f***ed up all over the planet, but over here in pakistna, its on the rise again the Rupee ... sucks ...


#6

i just found this and this better explains what the rupee is going through

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Rupee hits all-time low vs dollar

By Shahid Iqbal

KARACHI, April 23: The rupee fell on Wednesday to an all-time-low against the dollar, even lower than the parity when the greenback knocked down the local currency in the aftermath of the 9/11 incident.

The open market also witnessed record high value of dollar as the greenback was traded at a rate as high as Rs65.70.

The demand for the US currency was so high that it created panic in the inter-bank market and even large banks were striving to buy small number of dollars.

The dollar hit Rs64.72, a gain of 63 paisa in a single day, which reflected the trend.

The dollar boom in Pakistan is a unique phenomenon. The US currency has been losing against all major currencies for more than a year and there is a no sign for dollar’s strength in the world market.

The countries like Pakistan needs more, almost twice the amount of dollars just to pay the oil import bills. The dollar is cheaper against all major currencies and available in bulk in the world market because of record oil prices but for the weak economy of Pakistan the US currency is getting the value it does not deserve.

The Fed Reserves of United States has recently slashed the interest rates as low as 2.25 per cent, the rate Fed charges banks, which borrow from it, but it inflated the world economies with dollars.

“This was the result of the collapse of sub-prime mortgage in the United States, the impact of which was still haunting the economies in all parts of the world,” said M. Imran, a researcher and analyst.

The State Bank has been saying that Pakistan is safe from the impact of the collapse of sub-prime mortgage but the slashing of interest rates by the US Fed to support the falling stocks markets of the world and real estate business, has started penetrating into Pakistan.

This slashing of rates resulted in bulk supply of dollars, which devalued it against the major currencies and made the oil prices costlier because oil payments are bound to be in dollars.

“Pakistan has started receiving the impact of collapse of sub-prime mortgage in US, which could be in a total loss of $3 trillion.

The impact is visible as commodity prices along with oil prices have heated up in the world market and this was also because of cheaper dollar (but costlier in Pakistan) in the world market,” said an analyst.

Pakistanis are paying high wheat, rice and other commodity prices because the dollar has been gaining against the local currency. Pakistan doest not import but exports commodities like rice and sugar getting high prices but the local market prices have been linked with the international prices.

“The economies like England, Germany, France, Japan, and entire European Union are not facing intensity of higher oil and commodity prices because their currencies gained much against the dollar,” said the analyst.

Analysts said it is the dollar dominated economies, which are suffering and facing the real impact of higher oil and commodity prices.

Abid Ali, a currency dealer said the US currency would gain more in the coming weeks, which frustrated the importers and forced them to buy dollars at higher future rates.

“At first importers were of the view that the dollar would touch Rs66 by the end of this fiscal year but the panic buying has accelerated the pace of devaluation strengthening the market speculation that dollar may touch Rs66 in May,” said Ali.

The rupee has lost 4.5 per cent against the dollar since the beginning of this year.

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#7

whats up with AUS $ when US dollar was 60 it was going for 40 now when US$ is at 65 AUS $ is at 62


#8

[quote=", post:, topic:"]

whats up with AUS $ when US dollar was 60 it was going for 40 now when US$ is at 65 AUS $ is at 62
[/quote]

Bad news for students in AUS expecting money back from home (pakistan).


#9

[quote=", post:, topic:"]

Bad news for students in AUS expecting money back from home (pakistan).

[/quote]

the dollar’s value is going down the drain everywhere, it is going higher in just pakistan


#10

The Pakistani ruppee has a doomed future. Dollar is tanking because of the sub prime mess in the US. People were fleeing from Dollars and dollar based assets into alternatives like Euro/Gold/Oil. Actually the ruppee already lost most of it's value against the dollar in the past 6 months. We didn't see it because the dollar was weakening as well, now it's regaining some of it's lost value hence the moving up against the Pak Ruppee.

I sold all my ruppes for Euro's at Rs. 88 about 4 months ago. Now Euro PKR is Rs 105!

Our economy is headed down the toilet, Go Mush Go is going to starve a lot of people very soon. The only hard currency worth keeping for the next three/four years is Gold and believe it or not the current prices are a cheap bargain compared to what's coming.

I also think we're headed for a massive 1930's like worldwide depression in the next couple of years. No jobs, no food, no oil. A perfect recipe for war.


#11

[quote=", post:, topic:"]

I sold all my ruppes for Euro’s at Rs. 88 about 4 months ago. Now Euro PKR is Rs 105!
[/quote]

you are rich masha-allah :P


#12

[quote=", post:, topic:"]

you are rich masha-allah :P

[/quote]

I think Abbas is rich enough to support all the current 900+ members of WP, in case of any crisis :P

he’s lucky to be rich caz he’s got the name Abbas also :P

as for me … i am not rich right now …but we’ll see what the name’s got in it for me.


#13

what does abbas means?


#14

[quote=", post:, topic:"]

I think Abbas is rich enough to support all the current 900+ members of WP, in case of any crisis :P

[/quote]

Lol. Sure I can give everyone free domains! ;)

Apologies if the Euro comment seemed “shoda”… :D Was not my intention…

On a serious note, what I do is try to maintain the worth of the limited resources that I have… forex, metals & some commodities. Our ruppee is a sad story and a lost cause :(

I’m an optimist by nature but also a realist. Our future really makes me sad… so many people work their backsides off to get degree’s which will be worthless by the time they enter the job market. Our low income levels, massive population & our indifferences towards each other are going to take us down. We live way beyond our means and the consumer ‘chaska’ that lower classes and middle classes have tasted these past 6 years will increase discontentment and crime.


#15

Any speculators here? Is it bearish or bullish (the forex trade)? I saved all my money in PKR instead of USD (I used to receive in USD), and here we go. It's dropping massively in value and I'm not for interest and saving accounts. I plan to use my savings to fund my education (foreign), but my saving has already decreased in value :(

Do you think the devaluation will stop sometime this year and the rupee will actually gain weight in value? I do not have enough time or expertise to conduct my own research and speculate the economic conditions.


#16

invest in chinese currency


#17

[quote=", post:, topic:"]

Any speculators here? Is it bearish or bullish (the forex trade)? I saved all my money in PKR instead of USD (I used to receive in USD), and here we go. It’s dropping massively in value and I’m not for interest and saving accounts. I plan to use my savings to fund my education (foreign), but my saving has already decreased in value :(

Do you think the devaluation will stop sometime this year and the rupee will actually gain weight in value? I do not have enough time or expertise to conduct my own research and speculate the economic conditions.

[/quote]

I think this current government will keep devaluing the PKR for its own interests.


#18

[quote=", post:, topic:"]

Any speculators here? Is it bearish or bullish (the forex trade)? I saved all my money in PKR instead of USD (I used to receive in USD), and here we go. It’s dropping massively in value and I’m not for interest and saving accounts. I plan to use my savings to fund my education (foreign), but my saving has already decreased in value :(

Do you think the devaluation will stop sometime this year and the rupee will actually gain weight in value? I do not have enough time or expertise to conduct my own research and speculate the economic conditions.

[/quote]

Currencies change value against each other so some are bearish and some bullish. Pakistan and larger world economy will probably improve slightly next year then all down hill from there.

The only currency worth investing in in my opinion is Gold. Buy it anywhere from $ 820-850. We’ll see it touching $ 1200 mid next year. It’s a double investment in the sense you get dollar gains as well as dollar gains over PKR.

On another note, the State Bank of Pakistan yesterday put up a facility for all money changers to buy all the USD’s they want from SBP at a fixed rate of Rs. 64.70. So you should see the PKR stabilize short term against the dollar.


#19

[quote=", post:, topic:"]

Currencies change value against each other so some are bearish and some bullish. Pakistan and larger world economy will probably improve slightly next year then all down hill from there.

The only currency worth investing in in my opinion is Gold. Buy it anywhere from $ 820-850. We’ll see it touching $ 1200 mid next year. It’s a double investment in the sense you get dollar gains as well as dollar gains over PKR.

On another note, the State Bank of Pakistan yesterday put up a facility for all money changers to buy all the USD’s they want from SBP at a fixed rate of Rs. 64.70. So you should see the PKR stabilize short term against the dollar.

[/quote]

Thanks for the advice and you’re right. But it comes with some inconvenience like trading for gold in shops, and storing it in some bank locker etc.


#20

You're welcome. Yes, investing in gold is a minor inconvenice but making money is not ;)

If you decide to go the Gold route, buy only stamped ARY 10 Tola bars. The local tezabi is crap.

You can also buy and sell it online without leaving your home. I use Oanda for quick trades but whatever you do don't use leverage, the profits are much higher but long term you get taken out on the fluctuation in prices. I think there are companies online out there that offer the facility of buying gold and storing it in a locker for you. I don't remember the name but I think it was egold or bullion vault or something.

Here are a few gold charts for you.

http://www.kitco.com/charts/livegold.html

Btw all of this is just my opinion. DYODD. :)