Pakistani rupee, the cheapest currency in South Asia: Report
Video     Photos     Pakistan     World     Islam     Health     Crime     Islamic News     Business     Society     India     Travel     Middle East     Sport     sci/tech      Contact      RSS
Search

IS presence in Afghanistan a 'constant threat to Pakistan'

Who is Umm-ul-Baneen?

Govt releases 41pc less funds for development projects

Recent ballistic missile test significant for Iran: Gen. Hajizadeh

US, allies seeking to undermine Iran, Russia

Leader: Outgrowth of Revolution leading to enemy’s defeat

Islam, Humanity and Human Values

Pakistan must not recognize Israel, PLF letter to President and Prime Minister

Hamza Shahbaz's name placed on ECL

Helena Saeed: The first female AIG Police

A formal Arab-USA alliance brewing against Iran

Kashmir boy who acted in Bollywood movie martyred

Is there really a ban on Overseas Pakistanis to bring mobile phone?

Saad Rafique, brother Salman taken into NAB custody in Paragon Housing scam case

100 days not enough to judge performance: Aitzaz Ahsan

PTI to rely on Ordinances: Why is Opposition not happy?

Two Russian nuclear-capable bombers in Venezuela for joint exercises

Peshawar girl to represent country in US Open U-15 squash

PPP questions govt claim of seizing ‘ill-gotten’ £400m abroad

Iran High Council of Human Rights condemns crackdown on French people

THE deadlock appears closer to being broken

Balochistan cabinet shocked by CPEC presentation

EU's Mogherini says promised SPV to Iran to be in place in coming weeks

Weakening external sector: World Bank cancels $250m emergency relief loan

Decision to assassinate Arafat approved by Saudis: Former senior advisor

Persian Gulf kingdom sought to buy Israeli Hermes attack drones: Report

India shifted BLA commander to Afghanistan, claims Dr Jumma Marri

Indian troops martyred 95,238 Kashmiris in IoK since January 1989

India end Australia Test drought in nail-biter

“PM Khan tried to get me killed”: Serious accusation or a hilarious joke?

NO PLACE IN ISRAEL SAFE FROM HIZBULLAH MISSILES: NAIM QASSEM

Is Punjab Government giving special treatment to Shahbaz Sharif?

MYANMAR BECOMES HELL FOR KACHIN CHRISTIANS AFTER ROHINGYA MUSLIMS

DAESH TERRORISTS' RUSSIAN WIDOWS SEEK RETURN TO THEIR COUNTRY

SAUDI FM REJECTS TURKISH DEMAND FOR KHASHOGGI MURDER SUSPECTS’ EXTRADITION

NEW ME SECURITY PACT FOR US ALLIED ARAB REGIMES BEING WORKED OUT

After Trump's letter to Imran, US tirade against Pakistan continues

HOUTHI ANSARULLAH OPEN FOR MORE TALK IF SWEDEN PROCESS YIELDS: SALAM

PAKISTAN FOREIGN MINISTER FORESEES RESTORATION OF US AID

KP CM SEEKS REPORT ON TALIBAN EXTORTION COMPLAINTS

MBS: My strange experience of teaching the Saudi crown prince

PM Imran to review ministries’ performance every three months

PGCC should take Kuwait approach, avoid nonsense: Spox

Asian Classic Power-Lifting: Baig ends Pakistan’s medal wait after 15 years

Allocation of idle LNG capacity to private sector can save $100m

PML-N’s last ditch efforts to save its Quaid

Malaysian PM Mahathir defends PM Khan’s statement on ‘U-turn’

Exposure to air pollution can raise risk of miscarriage, study warns

Imran ‘India’s best bet’ after Pervez Musharraf: ex-Indian spy chief

We lost Test series against New Zealand due to our own mistakes, says Sarfraz

Saudi Arabia rules out extraditing Khashoggi case suspects

US needs ‘puppet’ like Saudi Arabia to achieve global domination: Analyst

Hezbollah: No spot in Israel safe from our missiles

Do not recommend leaving Afghanistan, says US military chief

Speaker Asad Qaisar meets Iranian President, counterpart in Tehran

US accuses Huawei CFO of Iran sanctions cover-up

Atletico, Sevilla go joint top with Barca

Sheikh Rasheed stirs controversy over information portfolio

Now, visa-free travel to this North American country

The deal behind the doors: PML-N looks ready to show flexibility on PAC chairman issue

Larijani: US creating terrorist groups

Punjab Will Have Uniform Syllabus By March 2020

Govt framing national tariff policy to boost exports

Two Iranians nominated for best Asian futsal coach

Over 1,700 arrested in latest 'yellow vest' protests in France

Iran, Russia stress support for private sectors in sanctions era

NAB is an autonomous body: Javed Iqbal

Pakistan may soon clear K-Electric’s sale

PM Imran, President Alvi due in Karachi today

Qatari emir, sultan of Oman not to join PGCC summit in Saudi Arabia

Not a nepotism: Fawad’s brother appointed as Punjab AAG

Who misfed PM Imran Khan?

The Wooing of Jared Kushner: How the Saudis Got a Friend in the White House

Super-Calm Asad Shafiq Equals a Unique Record For Pakistan

Paris in pictures: Burned cars and graffiti littered monuments

Israel authorized sale of spyware to Saudis: Report

Imran Khan’s Pakistan stands up to US like a sovereign nation: Analyst

Regional intelligence services behind Chabahar terror attack

2nd Speakers' Conference releases final statement

Controversy erupts over information portfolio; Chaudhry offers to step down in Rashid's favour

6 injured in blast at Milad gathering in Karachi's Gulistan-i-Jauhar area

Pakistan Army to Acquire FD-2000 Air Defense System With 125KM Range: Report

Can the Israeli regime attack Lebanon ?!

Bahria Town in Trouble? Employees, Residents & Customers protest

Shia Muslims lament inaction against terrorists for Parachinar blast

US Centcom Chief accuses Pakistan of using Taliban as a hedge against India

Top general warns of another 9/11 if US pulls out of Afghanistan

NAB should stay the way it is: Nawaz

China mission launches to far side of Moon

US sanctions against Iranian nation 'clear example of economic terrorism'

Backdoor diplomacy: Saad spills the beans on PML-N strategy to ‘go soft’ on PTI

President House opens door to public

‘Trade potential between Pakistan, India can be engine for prosperity’

Iran to give crushing response to perpetrators of Chabahar terrorist attack

US report highlights murky world of ‘contractors’ in Pakistan

Society’s mindset needs to be changed to combat harassment: Mazari

SC gives Wapda 15 to prepare new PC-1

Imran wants peace in Kabul without fighting others’ war

Govt wants SBP to consult Centre on exchange rate

Can Russia put an end to western hegemony?

2018-10-10 13:21:04

Pakistani rupee, the cheapest currency in South Asia: Report

 

The Pakistani rupee is said to be the cheapest currency in South Asia, according to Renaissance Capital.

In a report shared with Profit, Renaissance Capital says Pakistan’s most recent devaluation takes the rupee to just 4 percent below its long-term average rate (1995-2018).

The PKR has never been more than 13 percent weak (PKR147 equivalent) to its real effective exchange rate (REER) average rate since 1995 but may beat that in coming months, Renaissance Capital predicted.

Renaissance Capital considers Pakistan among the three vulnerable emerging markets alongside Turkey and Argentina and one investor told them the IMF is looking for rupee at Rs147 to a dollar – which would take it to a 13 percent discount to the long-term average rate.

 

The International Monetary Fund (IMF) has currently projected Pakistan’s current account deficit will contract from 5.9 percent of GDP in 2018 (the worst in emerging markets) to 5.3 percent of GDP in 2019 (again the worst in EM).

And these projections from the IMF don’t assume an IMF deal, significant fiscal tightening or major currency depreciation, explained Renaissance Capital.

Moreover, the IMF is currently projecting the budget deficit to widen from 5.7 percent of GDP in 2017 to 6.5 percent of GDP in 2018 and 6.9 percent of GDP in 2019.

The report said, “Argentina has a currency that is now 20 percent cheap to fair value, and the IMF assumes this will already help reduce its current account deficit from 4.9 percent of GDP in 2017 to 3.7 percent of GDP in 2018 and 3.2 percent of GDP in 2019.”

However, Renaissance Capital believes to reach Argentina’s level of undervaluation would require the PKR to go around Rs160 to a dollar.

It cautioned, “Turkey has a currency that is about 40 percent cheap to its long-term average, and the IMF assumes the CA deficit will shrink from 5.7 percent of GDP in 2018 to 1.4 percent of GDP in 2019.

To get to this extreme level, would require the PKR to weaken to around Rs210.”

On Tuesday, the central bank had allowed the rupee to depreciate by a record 7.5 percent or Rs9.371 against the dollar.

According to the central bank, the movement broadly reflected the current account dynamics and also the demand-supply gap in the foreign exchange market.

It said the increase in oil import bill due to rising global oil prices had exerted pressure in the foreign exchange market.

The central bank believes that this adjustment in the exchange rate along with the lagged impact of recent hikes in the policy rate, and other policy measures to contain imports would correct the imbalances in the external account.

This was the fifth devaluation of the rupee since December 2017, which has seen the local currency losing a cumulative 26 percent of its value against the greenback.

A report published by World Bank on Sunday said despite a modest rebound recently, there was a 10 percent depreciation compared to the beginning of the year and a 14 percent depreciation compared to one year before.

According to reports, IMF and Pakistan had disagreed over the exchange rate parity, as the State Bank of Pakistan (SBP) believed the exchange rate of Rs 137 to a US dollar by end of the current financial year 2018-19 would be enough to address the challenges.

According to sources, IMF’s determination was to the contrary and they wanted the rupee to be traded above Rs 145 to a dollar.

Pakistan has been facing a crisis on the external front, with burgeoning trade & current account deficits and depleting foreign exchange reserves.

Pakistan’s gross external financing requirement has been projected at $22-25 billion for the current financial year FY19.

Categories:  
Tags:   pakistan ، South Asia ، PEER ،
From other agencies (RSS Reader)

Brexit Troubles

- presstv