Will Rupee Devalue Further? Economic roller coaster

[Panther]

Thats not an issue at all. Its a straight forward procedure and not complicated at all. You need just a valid reason to do that.

[HellsGuardian]

And for how long this raised debt ceiling will keep away the imminent default?

Saw a post on twitter regarding this:
If your ship is getting flooded with water, you try to fix the leak, not raise the floor

BTW if US defaults, it will have a domino effect on global economy. May be the next recession is about to hit what's left by covid19.

[VCheng]

Ah yes. USA is the world favorite to be predicted to die, every other third Tuesday.

[HellsGuardian]

Haha i bet no one really wants that because like i said, it will have a domino effect to all nations.

[VCheng]

Let me just say that we all love to hate USA, and stop there.

On topic, PKR value will be in a holding pattern until the IMF talks conclude.

[usman_arooq2]

The official rate is whatever state bank decides the value of PKR should be, not the market rate that may actually prevail at the time of seizure.

Just like govt can acquire any piece of land at DC rate, not the actual market value.

[chameleons]

I think government won't do that again considering how they are asking everyone to invest here. PMLN did that because of sanctions back then and that was an extreme measure criticized by everyone.

I don't want to lose 50-60% of my USD savings because of a foolish government move.

[usman_arooq2]

Agreed it was a one time move, but situation nowadays is most unpredictable it has been last 20 years or so

1. US needs to raise debt ceiling
2. Future outlook of PKR doesn't seem good either
3. Shipping freight are all time high, affecting international trade
4. Oil prices
5. Afghanistan

I'd see if I can keep my USD in bank locker, the insurance should protect upto a certain sum depending on locker size.

[chameleons]

I have my USD in an Islamic bank and that is based on Qard contract where bank is the borrower and they have to pay me back my currency on demand so government can seize these accounts as well?

Aren't they different from conventional commercial accounts?

[Nabs]

They have raised the ceiling over a hundred times since 1917 when it was created. They will raise it again and again until the collapse of global civilization.

[Nabs]

Crude oil is going up fast, now at $78 (7 year high). I think its going back to $100+ range again. So expect massive inflation and rupee depreciation. Those who bought turbo charged vehicles like MG HS will soon be lining up to sell their vehicles as they won't be able to afford high octane fuel, or risk their engines using normal fuel (I am increasingly seeing MG HS filling normal fuel at Total DHA pump, Lahore).

[mehran]

Also keep an eye on your dollar currency notes series. They have a bad habit of becoming obsolete and become unacceptable to money changers in Pakistan.

[VCheng]

Incorrect. USD notes never become obsolete. The problem is with the money changers in Pakistan.

[Nabs]

Even the old design $100 bills are not obsolete. But no one accepts them in Pakistan anymore. All U.S. currency remains legal tender, regardless of when it was issued (source: federalreserve.gov).

[usman_arooq2]

Thank you for your concern, I do know the tricks of our money exchanges and banks regarding foreign currency

They refuse to accept old bills, bills of smaller denominations or those with any kind of mark. Sometimes they offer a lower exchange rate.

the same Banks employees mark currency bills with ball point pens like it's their scratch pad, I loathe the practice & refuse to accept if I see rhem6 using ball point on some bill before handing it over to me (even if it's a PKR bill)

replacing soiled currency is a burden that is born with our tax money because even our bankers don't value it.

[Xulfiqar]

In some moronic countries a 50 dollar bill is not accepted, i was quite surprised when I had to experience this.

[mehran]

I know that's why I mentioned money changers in Pakistan. Dollar currency notes do not expire globally but only in Pakistan.

[chameleons]

I read somewhere that dollar hoarding is not allowed. So I think you must deposit all your currency in your bank accounts, otherwise, it could lead to some legal troubles.

[MADDYBOY2]

171.45 current dollar rate
interbank

it will heading to 175

[chameleons]

USD will be @ 180 by the end of this year