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.
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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