The exchange rate: a steady hum of discontent
No economic variable captures the popular imagination in Pakistan more than the exchange rate. After Pakistan moved from a fixed to a flexible market exchange rate in the summer of…
Exchange rate volatility and exports
The exchange rate is a crucial component of trade and a dynamic macroeconomic determinant. The trade balance is impacted by exchange rate fluctuations. The growth process is slowed down as…
The exchange rate challenge
It is interesting to see that as far as the economic priorities are concerned, there seems to be an unannounced consensus between most of the political parties. Both the PTI…
Navigating exchange rate labyrinth
Classical economic theory of demand and supply for goods applies just as well to a currency, the Pak rupee, the dollar or any other. The demand for the Pak rupee…
Exchange rate adjustment: a welcome step
For the past many months, we have been voicing our concerns that a rational exchange rate policy is missing that would address increasingly untenable state of external account. Mercifully, in…
Is exchange rate hurting exports?
The trade deficit elephant is in the room. The room is getting a tad tight, with the burly presence of the energy elephant, plus several baby elephants. More and more…
Exchange rate adjustment: a welcome step
For the past many months, we have been voicing our concerns that a rational exchange rate policy is missing that would address increasingly untenable state of external account. Mercifully, in…
Managing exchange rate volatility
With the new IMF program in place after early July 2019, SBP will be moving into an unchartered territory of determining nominal exchange rate through Real Effective Exchange Rate (REER)…
Exchange rate woes
It was an awkward spectacle when Prime Minister disclosed that he was not informed of the exchange rate (ER) adjustments except through the news media. On the first adjustment of…
Government fumbling on exchange rate policy
In a telephone interview with Bloomberg, Prime Minister Shahid Khaqan Abbasi has said that Pakistan would not devalue its currency any further. He further added that in the future exchange…
