Will Rupee Devalue Further? Economic roller coaster

[capsat]

After State Bank of Pakistan (the national treasury / federal reserve) has become an autonomous body, a letter of credit for import of goods can only be established only if the ITEM is in 'Approved List' for the foreign exchange control.

in nutshell if an LC has to be established for $5000 State Bank of Pakistan will only approve it at interbank rate at 100% +15% if there is equivalent Pak Rupees available in the business account.
The additional 15% is adjustable to cater for exchange rate fluctuation at time of document release.

what a f&%king mockery our banking system in country has become.

it may sound Portuguese to plenty of you but it is a fact, even after taking 100% away from account for exchange rate treasury want to hold addtional 15% to adjust incase of increment upon document retiring.

Just like after 100% payment for a car, we are charged additional when govt levy taxes and we have to pay before vehicle delivery.

@SER_GTR @chinyoti may be able to simplify it further

[khurem]

Banks are at mercy of SBP as the regulator has asked them not to hedge their exposure which they used to do to mitigate the risk of FX rate movement in LC transactions. That explains the margin they are taking. 100% cash requirement has also come from SBP.

[HellsGuardian]

What is your analysis on this? How long will it last? How bad will it be?

[capsat]

after July 2024 the graph will stablize and start to drop by 1st qtr 2025, till then be nice to yourself and to the loved ones.

[pwuser162280538688]

You forgot to mention the syeds, pirs, shahs who are amongst the biggest landowners in Pakistan and continue to influence the unbelievably illiterate population of their area to vote for them on religious grounds.

[HellsGuardian]

Actually its the other way around. Anybody with influence, money, power likes to call themselves Shah sab, Chaudhary sab, butt sab etc etc

[Nabs]

[Nabs]

$=221

[Nabs]

$=224 interbank rate. Get ready for Sri Lanka style anarchy boys.

[capsat]

just saw ticker over news channel
"IMF" suggested the GOP to reverse the reduction of oil prices, expect abrupt Rs.10 / litre increment.

[abacus]

$ 225 PKR

While people are busy in chanting shallow slogans, Establishment is playing as always, creating a weak, impotent and always fighting for survival setup..Where each dog will try his best to make them happy to get more share...

But country is now literally inches away from default in all this "Intelligent" circus. May Allah help Pakistan,

[Xulfiqar]

as long as it takes, this time its taken hostage by a few in power.

Whenever that has happened in the world, a new world order comes out, the birthing pains of that order are nothing short of hellish.

[capsat]

[capsat]

[fb2013]

meaning?

[Nabs]

It is getting harder to keep your money from devaluation. Now you have to pay 1% wealth tax (per year) on value of more than one property where combined value is more than 25 million. I have a plot in the outskirts of Lahore and FBR has set its value more than the market price, so I will have to pay hefty wealth tax this year. I was thinking about buying another plot as the rupees I have saved are eroding away due to hyper currency devaluation. But now I am hesitating due to this wealth tax.

Cryptocurrency is declared illegal, gold now has 17 percent sales tax and is also a hassle and risky to transport and safeguard, buying dollars for investment attracts unwanted attention from authorities. Local stock market is a dump and you can't invest in foreign markets as no bank will remit money.

I earn in dollars (freelancer) and I am forced to surrender them to government for worthless rupee.

[hussain182]

Summmed up well.

[Xulfiqar]

Move out of Pakistan then, you are a freelancer contractor. Your residence should not matter to your employers.

[xenerking]

u earn in dollars, that you are free from Rupee devaluation, ask ur clients to send u dollars in payoneer account, and only convert the amount u need for now, keep else in dollars,

watelse u need?

[Nabs]

The main company I work with only wires money to bank account. I do receive some money in Payoneer from other companies, but its not much.

Also, even if I could get all my money in Payoneer, you can't just keep tens of thousands of dollars there. Its not safe. They can lock your account, freeze your balance, and there is nothing you can do about it. Just Google "Payoneer locked my account".