[Rate of Dollar against Pakistani Rupee in the Inter-Bank Market]
US Dollar: Rate = Rs.80.50
British Pound: Rate = Rs.126.51
Euro: Rate = Rs.102.93
[11th of November, 2008]:
[Rate of Dollar against Pakistani Rupee in the Open Market]
US Dollar: Selling Rate = Rs.79.5 Buying Rate = Rs.79.30
British Pound: Selling Rate = Rs.125.19 Buying Rate = Rs.121.45
Euro: Selling Rate = Rs.102.44 Buying Rate = Rs.99.31
Shahana Javed
Will the dollar rate go down further from what it is on November 11, 2008? I think it is Rs.79 to a dollar.
I am asking because I have to pay for my child’s semester fee in US dollars after converting Pak rupees. It is quite an expense. Please advise.
Due to the steps taken by State Bank of Pakistan, all currencies have weakened against Pakistani Rupees.
British Pound reached almost Rs.150 just few days back and now it is below Rs.120. But US dollar seems to be more stable and has only dropped from Rs.83 to Rs.80.07 [this is the rate in the inter-bank market, not open market].
Economists believe that Pakistani Rupee will gain further against US dollar in the up coming days. But how much this gain will be? This is something which cannot be predicted.
If you can delay your child’s semester fee for next few weeks or days, then may be you will save some money. On the other hand, if US dollar [again] starts to gain against Pakistani Rupee [which Economists think, most probably, will not happen], then you may have to pay Rs.2 to Rs.3 [extra] per US dollar.
Some people think that US dollar will reach Rs.70 soon [not sure if that is true].
Shahana Javed
Thank you for the useful analysis.
Do the economists give a reason for the sharp increase in dollar rate from 62 to 85? This is an important analysis for any thoughts for the dollar future.
Do you think if i bought pounds instead of dollars and then convert to dollars later, I would be better off?
Will the 10 billion dollars recently taken out of Pakistan by Kalia and Khannani and others be returned to Pakistan? I would suppose yes, otherwise why would FIA grill the arrested as announced in the news? Pls advise. Thanks.
As billions of dollars are taken out from Pakistan, the dollar demand increased which eventually increased the US dollar rate against Pakistani Rupees. World Economy crisis also has a little role in this situation.
The main reason for such an increase in US dollar rate against Pakistani Rupee is believed to be the illegal transferring of huge amount of US Dollars outside the country.
Country wide crackdown is being conducted against all the people [including Money Exchange Companies] who are believed to be involved in sending out [illegally] huge amount of US Dollars outside the country.
This crackdown is one of the reasons why foreign currency rates are going down.
Buying British pound in this situation is bit risky [this is what I think].
The fluctuation in British pound rate is more than any other currency. In just last few days, British Pound rate decreased Approximately Rs.30.
Rate of British pound can possibly go down further. So I will call it a risk.
Shahana Javed
I notice that the dollar rate against Pakistani rupee is less in the open market compared to the inter bank rates. I will appreciate your comments reflecting on this change.
I am not sure about this Inter-bank and open market rates difference but I personally think that after the crackdown, all money exchange companies [Main Players] are bit worried about their future. Who knows if some other name comes up after “Kalia and Khanani”.
When foreign currency rates were climbing up, the demand for US Dollars and other currencies was high. So money exchange companies were able to set the prices higher than usual.
Now when things seem to return to normal [plus the crackdown element] may have triggered this change in money exchange company’s rates. And may be because of instability in foreign currency rates, money exchange companies do not want to take any risks [not buying US Dollar for a rate which is higher than inter-bank market’s rate as US Dollar rate can go further down]
Shahana Javed
What is expected to move ahead in Pakistan in the near future to bring the dollar rate down further? The exchange rate was seen as 79 and again its 80 today. Also, the rise in rate was a whole lot in the last few months compared to its nominal fall. Actually there has been no significant fall compared to what the currency went through over the past months. Please comment.
Ok
Hello,
I have the same case. I have to repay my debt to a friend in a day or two in dollars. Should I wait more ( In case dollar rate will go down from Rs. 80 ) or should I get dollar at 80?
Is there any chance of dollar rate going down in case Pk gets loan from IMF?
Please assisst.
China has agreed to give Pakistan a financial Aid [Soft Loan] [and despite all Economic threats to Pakistan’s future].
This aid is believed to be of 500 Million US Dollars.
On the other hand, Government of Pakistan is expecting to get a 7.6 billion US Dollar Loan from IMF in the near Future.
If the Government gets this money [or a part of it] then Pakistani Economy will [artificially] remain stable for at least the next two years [this is what economists believe].
Most probably, rate of US Dollar will decrease [at least it will remain stable] against Pakistani Rupee [if Pakistani government gets the loan].
State Bank of Pakistan has injected US Dollars in the market before [to artificially stabilize Pakistani Rupee against US Dollar].
If Pakistani Government gets the above mentioned two loans, then most probably [as the State Bank of Pakistan will inject US Dollars in the market] Pakistani Rupee will strengthen against US Dollar. But at the moment, all depends on when and how much loan will Pakistan get.
Ok
So do you mean that I should wait, if so how long?
I really need sincere advice as this debt repayment will cost me nearly my 5 years income :/.
Will there be a change in US Dollar rate in a week or so, I mean when is Pk expected to get these above mentioned loans and when would we see the change?
[this debt repayment will cost me nearly my 5 years income]
This really is a serious problem. As if you pay your debt now and after few days, [IF] US Dollar drops to [let’s say] Rs.70, then you will regret this decision. Incase you are paying $10,000 then you will pay Rs.1 lakh EXTRA [Rs.1, 000,000] [that is: if you pay now with US Dollar at Rs.80 and after few days or weeks, US Dollar reach Rs.70].
Any prediction on the future of US Dollar rates is not possible. But we do know that the rate of US Dollar increasing further is not likely to happen.
We can say that there is a high possibility of a decrease in US Dollar rate against Pakistani Rupees. On the other hand, there is very little [if there is any] possibility of an [further] increase in the rate of US Dollar against Pakistani Rupee.
So if possible, I suggest you delay the re-pay of your debt as there is a high possibility that US Dollar rate will decrease against Pakistani Rupee in near future [when? This question cannot be answered as there is no specific date announced for the release of the above mentioned two loans “even if there is any date announced, usually things get delayed for one or other reason”].
[This is just my opinion and you should analyze the situation or contact any professional who you think will have a better answer. And I am not responsible for any loss].
Sorry about that but we have to write this stuff before giving our personal opinion in this site.
Shahana Javed
It seems like the reason for the slight decline in dollar was the unfair escalation in the rate by the money changers that fell in place due to Kalia and Khanani’s arrest.
The major decline that we are expecting seems like taking the same amount of time it took to rise. I suspect it will be over 5 to 6 months if at all things will get better and handled in the right direction. With Shaukat Tareen on board I am hopeful things will get better.
But, one is not quite sure because things are so unpredictable and uncontrollable in Pakistan – the reason why we consult experts like yourself. Thank you for your useful comments. Regards
kakar
what do the economists think about the future of pakistani rupee against british pound in the next few days will it be stable go up or fell furthermore i am have to pay for my admission in london i require 6000 pounds plz give me a good idea i am very much worried about the up and down rates shall i buy now or wait for few days thanks
Ok
Thankyou admin for all the help. I have high hopes that dollar rate goes down soon.
Regards,
Ok.
For “kakar”
British Pound was at Rs.150 just few days back, and now it is down at Rs.116.
On the other hand, US Dollar reached approximately Rs.83, and it is at [approximately] Rs.80 [in the inter-bank market].
So you can see the difference [the change in value] between the two foreign currency rates.
British Pound rate is much unstable [if compared to US Dollar].
In just few days, the rate of British Pound against Pakistani Rupee *can* go way up or way down.
Some people think that the normal value of British Pound against Pakistani Rupee is [or should be] 130.
Keeping that in mind [that the value of British Pound should be Rs.130], we can say that value of British Pound is quite low at the moment.
[Rate of British Pound against Pakistani Rupee will go down [further]? This is pretty much un-predictable. Like “Shahana Javed” said: things in Pakistan are unpredictable and uncontrollable].
So I think if you ask 10 different experts to whether you should pay the admission fee or not then I guess more than [or at least] 5 experts will vote for YES [as British Pound may reach its “so called” normal value of Rs.130 in near future].
Shahana Javed
I think that Rs.61 to a dollar rate for the last ten years was not reflective of the true economic situation in Pakistan that was slowly worsening during President Musharaf’s regime. I think the rate should have gradually and uniformly risen to where it is now but it was artificially kept constant at a lower rate!
In all probabilities it seems like it will now stay at Rs.80 as the Governor of State Bank of Pakistan announced some days ago. She later gave it a different tone but I guess that was it.
If true efforts are made to bring the economy to some semblance, a miracle may happen and that is what we are hoping for. But if we think something can go wrong, it probably will.
Depending on our need, we have to take our decisions with whatever options are available and go ahead with accepting the loss which is hurting every simple mediocre layperson like us. We should now accept that the pinch is being felt by all and we are no exceptions. So lets go ahead and face the reality. We can wait and watch for a few more days but our past suggests “what has gone up has seldom come down”. The true gravitational force is missing in the show-pieced efforts. Some positivity has surfaced but the chances of those effects to trickle down to a commoner are slim.
Shahana Javed
What I dont understand is why british pound is now all of a sudden so flighty and why is dollar becoming so obdurate or inflexible. After all these are both currencies that we weigh in terms of rupee value. Excuse my naive approach to the forex business.
ok
Shahana,
Are you suggesting that Dollar rate will stay at Rs. 80?
Have you consulted any expert on this?
Shahana Javed
Yes I am suggesting that the dollar will stay at Rs.80. I presume I am consulting an expert (admin) thru this site. No I have not heard a definitive response from an expert that says the dollar will remain at Rs.80. I am hoping it goes down. It is my personal analyisis of the past trend dollar has taken that the current rate wont change that soon. But its okay to disagree with me. Please dont consider my word as carved in stone. I am not an expert.
Ok
Thankyou Shahana for your prompt response.
Dollar is selling at 81 according to forexpk.com today!!!
For “Ok”
I suggest that you do not use “forexpk.com” to check currency rates as this site belongs to “Khanani & Kalia” and if you take a close look at the last time the data was updated, you will see this date
**Updated at:11/7/2008 11:24:01 PM(PST)**
This site no longer updates.
US Dollar is closed below Rs.80 Today.
Ok
Thankyou admin for correcting me.
Ok
Can you tell me a website which provides accurately updated rates?
These days, “dollareast” is the site where you will get updated rates [Open-Market rates]. But I suggest confirming the rates from different sources.
ARYoneWorld [News Channel] also show currency rates [their source is dollareast] in their business section.
For Inter-Bank rates, you can use “brecorder” [but the data do not get updated often. some times, for many days the same rate is shown under new dates].
Ok
What is the difference between inter-bank and open-market rates?
Shahana Javed
Hey, i was looking at the Forex site which was not changing from 80. I did not know the site was not being updated. My analysis were based on the rate I was looking at on a daily basis which was outdated. I feel more optimistic now consulting the DollarEast site which is showing a rate of 78 selling. It gives me immense satisfaction to see that the dollar rate is going below 80. Thank you admin for suggesting this site.
Ok
Admin,
I am sorry to re post but it seems the last post I made to ask the difference b/w open-market and inter-bank rate has been deleted!
aamar
Dear Sir, I am consulting currency rates from two sites i.e. (1)dollareast.com/ (2) forex.com.pk/open_market_rates.asp
But unfortunately, there is a difference of rates in both of these sites. At this time the Dollar rate on “dollareast” site is : 77.80/78.00 and on “forex.com.pk” it is : 78.80/79.60. Kindly guide me which site’s rates are correct. Thnanks.
For “Ok”,
Inter-Bank is an international currency exchange market. Banks from all over the world are involved in currency exchange in this market. This is little complicated stuff.
We [normal people who want to buy or sell any currency locally] do not have to worry about inter-bank market.
Rate of US Dollar and other currencies [in the open market] directly depends on the inter-bank market rates.
For “aamar”,
I suggest you use DollarEast. This site provides accurate and updated data.
Ok
So when we buy any currency, we will be buying it on the open-market rate. Right admin?
One more thing, where should we buy currency from; Bank or Foreign Exchange? I mean which on would be cheaper to go for?
Shahana Javed
Hello Admin,
Dollar East website shows two rates for “Selling”. One for Remittance and the other for Currency.
The Selling rate for Remittance is 80.50 and the rate for Currency is 78.00.
Why are the two rates different for Selling?
maher
hi all, i live in uk and am from pakistan,
i wanted to buy some gold from pakistan since i earn in pounds and recently pounds is a bit down however gold has also decresed in pakistan, but m not sure to buy gold now with pounds is it a right decision or shall i wait a bit to see if the pounds gain ..or is there any chance that gold will be expensive too..in the near future..please guide me if anyone can..thanks
For “Ok”,
“So when we buy any currency, we will be buying it on the open-market rate?”
Yes, we have to use local exchange companies for exchanging any currencies. In order to deal with banks [In currencies other than Pakistani Rupee], we have to open a foreign bank account. Such account [foreign bank account] is not easy to get [if compared to opening current, saving etc accounts].
For example: if you want to open a foreign bank account in Bank Alfalah, then you will need to deposit $1000 [initial deposit] plus you will have to show proof of your earnings [foreign currency earning proof]. [I am not sure if Bank Alfalah has changed these requirements or may be now they have added more requirements for people who want to get a foreign bank account].
So basically we have to use local exchange companies this is our best [or may be the only] option.
For “Shahana Javed”
People for want to send money from other countries to Pakistan can use Banks for this purpose. There are few options available for example: “Demand Draft” or “Telegraphic Transfer” or “Money Orders” etc. Remittance rates are related to this type of business.
I think the data or rate in DollarEast [for Remittance (TT/DD) (Demand Draft/ Telegraphic Transfer)] is not being updated. This rate should be below Rs.80.
Anyway, we do not have to worry about these rates [unless we have to send money to Pakistan from other countries via DD etc].
For “maher”
According to some Economists, [Normal] rate for British Pound is some where near Rs.130. So there are two main reasons why buying or investing any money in Gold [in Pakistan] can be bit risky [in the current situation].
First: British Pound rate is low at the moment and it may reach Rs.130 [again] in near future. [British Pound rate is very unstable these days].
Second: Gold rates can go up in up coming days but what if the rates drop further? Gold Rates are also unstable these days.
So in such situation, you will be taking a risk if you decide to buy Gold in Pakistan.
For “maher”
Yesterday’s Gold Rate [10 grams] in Pakistan: Rs.19, 628.
Today’s Gold Rate [10 grams] in Pakistan: Rs.19, 328.
aamar
Which foreign currencies are most traded in Pakistan in open market ?
For “aamar”,
US Dollar
British pound
Euro
Canadian Dollar
UAE Dirham
Saudi Riyal
Australian Dollar
etc
aamar
Why British Pound is falling down day by day ?
Ok
Admin, I can ask someone to buy me Dollars through a bank.
Question remains though, whether it is cheaper to buy dollars from bank or through foreign exchange?
For “aamar”,
Some Economists think that British Pound will soon reach [its normal rate] Rs.130. At the moment things are pretty mush unstable. Pakistan taking loan [7.6 Billion Dollars] from IMF: also taking a soft loan from China [500 Million US Dollars].
On the other hand, NAB (National Accountability Bureau) is doing investigation against major Money Exchange Companies.
All these things have made British Pound rate [and other Foreign Currency Rates] very unstable. Right now the rate [for British Pound] is pretty low but sooner or later [some Economists think that] British Pound will [or may] reach Rs.130 [at least].
For “Ok”,
Banks normally deal in foreign currencies using [rates that are little higher than] Inter-Bank Rates. In the current situation, you can see that US Dollar rate in open market is less than the rate in Inter-Bank market. So [for current situation] I think open market is the better option for buying US Dollars.
maher
dear admin
thankyou so much for your reply
that has really helped me
i will be coming to this website more often now..esp when i have a problem..keep up the good work ..regards
Shehryar Khan
Dear Admin,
I want to know the Dollars conversion to Pakistan’s Rupees for the last 10 years so please help me out.
Yours sincerely
Shehryar Khan
Ok
Dear Admin,
Dollar price has gone up from 77.50 to 79 at per dollareast.com!
Will it go further up?
I spoke with an investment banker. He told me that its an artificial rate. Originally dollar is at 90-95. And that it would go up from 79. What is your opinion?
For “Ok”
Original value for US Dollar to be above Rs.90: This is [I think] a little unlikely to be true. If an investor banker told you this information then may be it will be true or may be not.
But what I hear about the inartificial value of Pakistani Rupee: it is around 70 to 75.
It is very much possible that what I heard is totally wrong.
Recently: I heard a news where some Pakistani official stated that the value of Pakistani Rupee can increase against US Dollar in the upcoming days. The reason for this, which was stated: [I think] it had something to do with Oil Bills. But this increase will be temporary. These Oil Bills are the cause [as stated by government officials] for the increase in the rate of US Dollar but this will be a temporary increase and US Dollar rate will stabilize [decrease] sooner or later.
In the past few days, Pakistani Rupee was very much stable. I personally think that the government of Pakistan will surely do something if US Dollar rate starts to increase again.
So even if value of US Dollar starts to rise again, it will be stabilized [decreased] by the government of Pakistan. [Pakistan recently got a part of IMF Loan].
Ok
Thank you admin.
You are doing a great job here. Keep it up:)
I will stay in touch.
farrukh
hi
can you please update us on pound? is it going to cross RS125 in near future? i will be thankful
For “farrukh”,
If you have a foreign bank account then you can get British Pound exchanged at a rate of [approximately] Rs.119. However in the open market the rate is approximately Rs.115.
I personally think that British Pound should have a rate of Rs.130 [at least]. Some Economists predict that British Pound will reach RS.125+ in next few weeks. [Things very much depends on Global Economy][British Pound Rate has dropped globally].