The Pakistani Rupee lost value against the US dollar for the second day in a row. On October 20, 2023, it was worth PKR 278.80, but it went down by PKR 0.63 in the next two days. On Tuesday, it ended at PKR 279.43 for one US dollar, which is less than the previous day when it was PKR 279.12.
This happened because there is a high demand for the US dollar in Pakistan. People need it for buying things from other countries, and companies need it to make payments. Also, the government has to pay back money it borrowed from other countries, and businesses are using more raw materials, which means they need more US dollars.
The Pakistani Rupee had been doing well for about six weeks, thanks to some actions taken by the government and the central bank. It had gained value and was 9.10% stronger against the US dollar since it was at its lowest point on September 5, 2023.
However, experts are worried because the country needs to have enough foreign currency saved up to keep the Rupee stable. This is important because it helps protect the economy from unexpected problems and keeps the foreign exchange market in balance. Saving up foreign currency can also help prevent sudden changes in the Rupee’s value and maintain good trade with other countries.
The recent change in the exchange rate reminds us that Pakistan has to find a balance between making sure it can buy things from other countries and keeping the Rupee’s value stable. The central bank and the government are responsible for making sure this balance is maintained.
Even though the Rupee lost some value temporarily, experts still think that Pakistan’s economy can do well. The strong performance in recent weeks shows that the country can recover from the challenges of the global economy.