Main Job of SPB is stop Volatility and speculations, which it do not today.

Doom1111

Minister (2k+ posts)
When a currency devalues to 1.5 rupee or around 1% value against dollar in a single day, cannot counter volatility or speculations than something is really wrong. The sole purpose of the Reserve of any number is to stop speculations and high volatility this the reason why any country maintain reserve if the purpose the killed than whole purpose maintaining the reserve is gone. When you do not counter basics than what will happen

If they are doing basics than what is the purpose of hiring 3 governor SBP?

1) People will buy from the exchange due to Panic

2) Investors will lose trust in PKR due to extreme Volatility

3) Inflation will be confirm in double digit.

4) Less FDI due to investor will not trust PKR

5) Less deposit in the commercial banks

6) Less secondary investment.

Yes i know it is market base currency however, in any kind of exchange rate it is job not to bring Speculations and volatility into play even if you have 100 million dollar the sole purpose it is stop speculations and Volatility.


Do you know according to Mailk Bostan, Arif Habib and Asad Rizvi, that due to panic people bought 120 million dollar today from local exchange rate market they said SBP today Kill the purpose of maintaining the reserve. These people bought it to save their earning so that they afford things when it get inflated.

I mean a local can do same Job maintain Interest rate at 7, and do nothing to beat Speculations and volatility.

Why wasting more 9 million rupee for 3 SBP governor a month ,where a local can the same job at 1 million rupee.

If you kill basic and purpose than you can kill entirely.


It is like a bought a car i will not put fuel in it, i will not maintain it, i will not clean it, i will not service of it, and i will not change oil. What will happen car will die at the same that is what happened. They would have saved those 120 million dollar but PTI is making SBP a Institution just like it did to PCB.
 
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arifkarim

Prime Minister (20k+ posts)
When a currency devalues to 1.5 rupee or around 1% value against dollar in a single day, cannot counter volatility or speculations than something is really wrong. The sole purpose of the Reserve of any number is to stop speculations and high volatility this the reason why any country maintain reserve if the purpose the killed than whole purpose maintaining the reserve is gone. When you do not counter basics than what will happen

If they are doing basics than what is the purpose of hiring 3 governor SBP?

1) People will buy from the exchange due to Panic

2) Investors will lose trust in PKR due to extreme Volatility

3) Inflation will be confirm in double digit.

4) Less FDI due to investor will not trust PKR

5) Less deposit in the commercial banks

6) Less secondary investment.

Yes i know it is market base currency however, in any kind of exchange rate it is job not to bring Speculations and volatility into play even if you have 100 million dollar the sole purpose it is stop speculations and Volatility.


Do you know according to Mailk Bostan, Arif Habib and Asad Rizvi, that due to panic people bought 120 million dollar today from local exchange rate market they said SBP today Kill the purpose of maintaining the reserve. These people bought it to save their earning so that they afford things when it get inflated.

I mean a local can do same Job maintain Interest rate at 7, and do nothing to beat Speculations and volatility.

Why wasting more 9 million rupee for 3 SBP governor a month ,where a local can the same job at 1 million rupee.

If you kill basic and purpose than you can kill entirely.


It is like a bought a car i will not put fuel in it, i will not maintain it, i will not clean it, i will not service of it, and i will not change oil. What will happen car will die at the same that is what happened. They would have saved those 120 million dollar but PTI is making SBP a Institution just like it did to PCB.
When currency was stable, it led to record current account deficit, donkey

 

Sohail Shuja

Chief Minister (5k+ posts)
When a currency devalues to 1.5 rupee or around 1% value against dollar in a single day, cannot counter volatility or speculations than something is really wrong. The sole purpose of the Reserve of any number is to stop speculations and high volatility this the reason why any country maintain reserve if the purpose the killed than whole purpose maintaining the reserve is gone. When you do not counter basics than what will happen

If they are doing basics than what is the purpose of hiring 3 governor SBP?

1) People will buy from the exchange due to Panic

2) Investors will lose trust in PKR due to extreme Volatility

3) Inflation will be confirm in double digit.

4) Less FDI due to investor will not trust PKR

5) Less deposit in the commercial banks

6) Less secondary investment.

Yes i know it is market base currency however, in any kind of exchange rate it is job not to bring Speculations and volatility into play even if you have 100 million dollar the sole purpose it is stop speculations and Volatility.


Do you know according to Mailk Bostan, Arif Habib and Asad Rizvi, that due to panic people bought 120 million dollar today from local exchange rate market they said SBP today Kill the purpose of maintaining the reserve. These people bought it to save their earning so that they afford things when it get inflated.

I mean a local can do same Job maintain Interest rate at 7, and do nothing to beat Speculations and volatility.

Why wasting more 9 million rupee for 3 SBP governor a month ,where a local can the same job at 1 million rupee.

If you kill basic and purpose than you can kill entirely.


It is like a bought a car i will not put fuel in it, i will not maintain it, i will not clean it, i will not service of it, and i will not change oil. What will happen car will die at the same that is what happened. They would have saved those 120 million dollar but PTI is making SBP a Institution just like it did to PCB.
What is your point? you want SBP to inject $ into the market to curb demand by increasing supply?

So what comes next if it does that? You are going to get short of the next installment to be paid to IMF.

Inflation is not a unilateral phenomenon, many factors affect inflation.

I will be much interested to know the cause of this 1% decline in USD to PKR parity rate, rather than its effects. Do you have anything in mind, why Dollar is getting stronger?
 

Doom1111

Minister (2k+ posts)
What is your point? you want SBP to inject $ into the market to curb demand by increasing supply?

So what comes next if it does that? You are going to get short of the next installment to be paid to IMF.

Inflation is not a unilateral phenomenon, many factors affect inflation.

I will be much interested to know the cause of this 1% decline in USD to PKR parity rate, rather than its effects. Do you have anything in mind, why Dollar is getting stronger?
Today SBP lost 120 million dollar just by local buying dollar from the market due to speculations. If SBP took measure than it could have saved 80 million dollar from those 120 million dollar easily. Sometimes being over smart does not pay.
 

arifkarim

Prime Minister (20k+ posts)
What is your point? you want SBP to inject $ into the market to curb demand by increasing supply?
Today SBP lost 120 million dollar just by local buying dollar from the market due to speculations. If SBP took measure than it could have saved 80 million dollar from those 120 million dollar easily. Sometimes being over smart does not pay.
Yes he wants Ishaq Dollar formula that led to record current account deficit


 

Sohail Shuja

Chief Minister (5k+ posts)
When currency was stable, it led to record current account deficit, donkey

Its a general effect of USD price hike, when imports become expensive and your exports become cheaper. Plus there was a clear cut policy of the Govt to reduce imports as much as possible. A CAD surplus was due to that.

But at the moment, the OP is right that sudden inflation of almost 8 Rs in three months rings a bell for the investors and also the local savers. People start loosing trust in your currency.
 

arifkarim

Prime Minister (20k+ posts)
Today SBP lost 120 million dollar just by local buying dollar from the market due to speculations. If SBP took measure than it could have saved 80 million dollar from those 120 million dollar easily. Sometimes being over smart does not pay.
SBP is not allowed to manipulate nation's currency. It can only set interests to curb inflation. And that's it.
 

Sohail Shuja

Chief Minister (5k+ posts)
Today SBP lost 120 million dollar just by local buying dollar from the market due to speculations. If SBP took measure than it could have saved 80 million dollar from those 120 million dollar easily. Sometimes being over smart does not pay.
bhai wohi pooch raha houn k Speculation kis baat ki thi?
 

Doom1111

Minister (2k+ posts)
SBP is not allowed to manipulate nation's currency. It can only set interests to curb inflation. And that's it.
It did in March 31 2021 to buy dollar from the market to stop Volatility and speculations either way it is any kind of side it brings cons as well merit.
 

Doom1111

Minister (2k+ posts)
My point as Muzzilaim Bhai said on youtube today SBP should at least acted in Exchange market to stop panic dollar. At 8pm when figure was shown to him than he shocked as well that 120 million vanish from the market in a single day due to panic buying.

Do you guys know that Exchange rate companies are bound to deposit their currency in SBP at the end of each month. Think if SBP could saved those 120 million dollar due to speculations attack.
 

arifkarim

Prime Minister (20k+ posts)
My point as Muzzilaim Bhai said on youtube today SBP should at least acted in Exchange market to stop panic dollar. At 8pm when figure was shown to him than he shocked as well that 120 million vanish from the market in a single day due to panic buying.

Do you guys know that Exchange rate companies are bound to deposit their currency in SBP at the end of each month. Think if SBP could saved those 120 million dollar due to speculations attack.
The cost of intervention is far too great. Remember Pakistan lost 20 billion dollars on the current account just to ensure dollar price stability
https://twitter.com/x/status/1417079017342132224
 

Doom1111

Minister (2k+ posts)
Nope, it did this to build dollar reserves.
It did to stop Volatility.




Killed the purpose today of Flexible exchange rate.


https://twitter.com/x/status/1417179198192562180
Watch at the end even Muzzammil had zero answer why SBP did not stop panic buying today.
 

Doom1111

Minister (2k+ posts)
The cost of intervention is far too great. Remember Pakistan lost 20 billion dollars on the current account just to ensure dollar price stability
https://twitter.com/x/status/1417079017342132224
By spending 50 million could have saved 70 million dollar plus people would brought some RDA, FDI and secondary inflows if SBP acted.

Sometimes being too smarts also kills the purpose. Sometime just follow the purpose and basic like Ali bhai said today. Ali bhai said too many governor in a one Jar is killing the matter.
 

Doom1111

Minister (2k+ posts)
Asad Rizvi confirmed me today that Dr Murtuza is going to be fired soon. He heading today SBP Governor was not around in Pakistan due to Eid. There was miscalculation on his side ,which lead panic buying as FM was not happy that stability does not like any kind of speculations attack.
 

Doom1111

Minister (2k+ posts)
SBP should keep its intervention in the market to a minimum
Yes but Flexible change rate 100% allows to stop speculations and panic buying and if you are not acting to stop it than you are doing a crime . I told Asad Rizvi who is the head of Monetary Policy board meeting of SBP and i asked the reason why they are not increasing interest rate is due Supreme Court is hearing the matter of 13.5 interest rate hike.

Umar Ata Baindail is hearing Dr Zubair petition on weekly bases. Asad Rizvi is summoned on August 8th.
 

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