The Pakistani Rupee (PKR) has kicked off 2022 by reversing last week’s gains against the US Dollar (USD) in the interbank market today. It depreciated by 23 paisas against the greenback after hitting an intra-day high of Rs. 176.1 against the latter during today’s open market session.
It depreciated by 0.14 percent against the USD and closed at Rs. 176.75 today after gaining Rs. 1 and closing at 176.51 in the interbank market on Friday, 31 December.
While the global financial system continues to grow gradually, inflation and other hurdles threaten fiscal progression everywhere. For instance, commodity prices are suffocating debt-ridden and underdeveloped countries, and downward adjustments to things like currency units are not painting a good picture for the near term.
The situation is pretty much the same in Pakistan. The local unit had a rough 2021, losing 10 percent value against the dollar on a year-on-year calendar year (CY) basis.
Discussing the rupee’s near-term outlook in a news column, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, blamed central banks and governments worldwide for damaging the fiat model. He explained that central banks and governments all over the world have played a vital part in inflating the economy and refuse to accept it.
He wrote: “It is a proven fact (doubling of balance sheets) that despite severe economic conditions caused by them, advanced or so-called rich economies easily escape the financial misery by printing money (quantitative easing) and by opting for ultra-low and negative interest rates”.
The PKR also posted losses against the other major currencies in the interbank currency market today. It posted losses of 20 paisas against the Pound Sterling (GBP) and four paisas against the Euro (EUR).
The rupee also lost five paisas against the Saudi Riyal (SAR), six paisas against the UAE Dirham (AED), and 11 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.
Conversely, it appreciated against the Australian Dollar (AUD) and posted gains of 62 paisas despite the threat of intraday shredding.