Rupee slide explained, busting Shahbaz Rana's propaganda

[arifkarim]

“Where will the exchange rate go if it’s left completely independent? What’s the point in building foreign exchange reserves if they are not stabilising the exchange rate?”

Purpose of reserves is to make sure currency doesn't overvalue / undervalue too much under free market exchange rate system. State Bank can then intervene and buy PKR if it's too much undervalued and sell it if it's too much overvalued hence keeping up with the real effective exchange rate

 

[Doom1111]

Purpose of reserves is to make sure currency doesn't overvalue / undervalue too much under free market exchange rate system. State Bank can then intervene and buy PKR if it's too much undervalued and sell it if it's too much overvalued hence keeping up with the real effective exchange rate

He blamed Reza Baqir and Shaukat Tarin for the mess. Both fighting with each other.

 

[arifkarim]

he said while noting that the rate is at an all-time high of almost Rs170 although the reserves have increased to $20bn from $15bn in May when the parity was around Rs152. “I don’t get it. What kind of economics is it?”

It's called real effective exchange rate economics. SBP won't allow PKR to become too much overvalued or undervalued

 

[Doom1111]

Purpose of reserves is to make sure currency doesn't overvalue / undervalue too much under free market exchange rate system. State Bank can then intervene and buy PKR if it's too much undervalued and sell it if it's too much overvalued hence keeping up with the real effective exchange rate

Just like it did today right.

 

[arifkarim]

He blamed Reza Baqir and Shaukat Tarin for the mess. Both fighting with each other.

Real effective exchange rate is still around 100 so what's the problem? Cry wolf when it goes to 80 or 120 as it happened during Ishaq Dollar Bhagora

 

[arifkarim]

Just like it did today right.

Yes it was a positive intervention not the one like we saw during Ishaq Dollar years when SBP interventions cause pkr to overvalue by real effective exchange rate of 121 ?

 

[Munawarkhan]

No government will apply this as it is sucidie because our 99% industry depends on Dollar rate and no government can cope with. Sarwar told this Imran Khan that even if you change Usman Buzdar and bring a someone else will not matter because people cannot vote with empty stomach and unafforadble bills. He said our purpose is to make people life better not miserable and we have overdone blame on others and people are tried of our excuse.
" “After three years, blaming the previous government for all governance failures was in fact infuriating people. The party has made strides in bettering the state of affairs of rural folks. For some odd reason, those things are seldom talked about, and the only narrative that party tries to sell is that previous governments were thieves.”

We will see about that in 2023, till then you can go ans shout somewhere els with stupidity that you keep posting daily.

The fact still remains that previous govt were not able to reform a single state institute and all of them were accumulating loses.

The fact still remains that Pakistan was on the brink of default in 2018, and now we carry a reserve of more than $20 Billion.