Pakistani Rupee becomes World's Best Currency
We, as Pakistani have always seen the downfall of our currency (Pakistani Rupee - PKR). The PKR price of One US Dollar has always increased and we have never seen our Currency on Top (neither in performance nor in value/price). But now, here is good news for all the Pakistanis that the Pakistani Rupee has become the World’s Best Currency of 2021. It has become the best performer currency of the world because it strengthened and ranked highest against the US Dollar in the first three months (January, February, and March) of 2021.
Mr. Muzammil Aslam, the CEO of Tangent Capital Advisers, tweeted about Pakistani Rupee being on top performer currencies. He mentioned in his tweet that it’s time for celebration for all the Pakistanis.
He also cited the Bloomberg data in his tweet. According to this Bloomberg, the currency of Canada (Canadian Dollar) is in 2nd position in the list of top-performing currencies worldwide and the British pound is in 3rd number.
Tahir Abbas, Head of Research at Arif Habib Limited, also said to Express Tribune that “the excessive inflow of dollars supported the rupee in maintaining the uptrend.”
In Dec 2020, the Price of One US Dollar was 160 Pakistani Rupees but now in March 2021, after the investments, the price of One US Dollar has been reduced to 152 Pakistani Rupees in the Interbank Market. From the beginning of this Year 2021 (from 1st January to 31st March), the Pakistani Rupee is improved by 4.09 percent. According to current gain cycles, the analysts estimated that the One US Dollar Price will peak from 150 RS to 152 RS and it is also estimated that till the end of June 2021, this price will not increase more than 155 RS.
This happened because the top three lenders (IMF, World Bank, and Asian Development Bank) of the world invested money in Pakistan which increased the arrival of foreign currencies in Pakistan. International Monetary Fund (IMF) has given their third fund to Pakistan.
- 500 Million Dollars have been received from IMF.
- 1.3 Billion Dollars have been received as a fund for the different projects from World Bank.
- 300 Million Dollars have been received from Asian Development Bank as a fund for the Hydropower plant Project.
Other than these three investments from top lenders, Pakistan has also borrowed $2.5 billion in Eurobonds. There are more interesting factors that have raised the Pakistani Currency in becoming the best performer currency of 2021. One institutional factor is that the demand for the local currency of Pakistan has increased by RDAs (Roshan Digital Accounts); this demand has increased because these accounts are in use of everyone who are sending money to Pakistan. Due to this factor, the appreciation of the Pakistani Currency is increasing. Another Currency Stabilizer Factor is the introduction of a new scheme under Naya Pakistan and because of this, Foreign Direct Investment (FDI) is on the rise.
These steps are proving to be positive steps towards the Pakistani Economy because it is gaining the confidence and trust of investors. If everything keeps on running like now, it will be beneficial for the worth of Pakistani Currency and the Pakistani Economy.
Posted: 02 Apr 2021
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