Over the past few months, Pakistan’s currency has seen a drastic fall against the US Dollar. With the new government and their policies, it had become difficult to stabilise the Pakistani Rupee. However, in a recent analysis, Pakistani Rupee has shown its resilience once again and has outperformed all other currencies in Asia. The Pakistani Rupee has shown a drastic increase against the US Dollar while all other Asian currencies have decreased against the US Dollar. Due to this performance the Pakistani rupee has recovered its losses from Last month (Sept) and is going towards stabilisation once again and leads the race against the USD by outperforming all other Asian currencies and stays on top.
Analysis Report on Performance of Pakistani Rupee in Asia
Due to the action against smuggling of currency and several illegal foreign exchanges, the Pakistani rupee has become the top-performing currency in Asia. According to the data report by MSCI Asia Emerging and Frontier Markets Index, the rupee has outperformed all of its Asian peers and has outpaced them against the USD. An astonishing 1.7% appreciation is shown in the Pakistani rupee from July 1, 2023 to October 9, 2023. Simultaneously, other Asian currencies have plummeted in this time period against the US Dollar.
The most depreciation has been shown by the Thai baht, it has shown a depreciation of 5% against the US Dollar. Similarly, the Bangladeshi Taka dropped 1.9% against the US Dollar and even the Korean won showed a depreciation of 2.5%.
When the caretaker government took control, the rupee was in bad shape during August. Fortunately, during the month of Sept the rupee outperformed in the Asian Continent and showed an appreciation of 6% against the US Dollar.
September Report of Pakistani Rupee
At the start of September, specifically on 5th of Sep, the rupee went to an all time low of 307.1 against the US Dollar. Since then, the government has shown a keen interest and effort in stabilising the economy rupee again by taking serious action against the smuggling of currency and by taking numerous measures to reduce black market activity as much as possible. By doing so, the rupee gained an immense 9% appreciation against the US Dollar in no more than 5 weeks.
As the illegal dollar transactions have been rigorously fought against in the last few weeks and months, the rupee has shown an upward trend. Alongside that, the new reforms by the State Bank of Pakistan in relation to foreign exchange companies and the panic selling of dollars have helped the rupee to rise and gave it an upward trend in the market.
These reforms by the State Bank of Pakistan regarding exporters selling dollars and panic selling have proved to be quite advantageous for the Pakistani Rupee. Check to see how new tax reforms can impact Pakistan’s economy and currency here. World Bank Suggests Taxing Pakistan’s Agriculture and Real Estate