There is no way to control the dollar price
Dollar prices have skyrocketed in Asian countries. The dollar has crossed 200 rupees against the Pakistani rupee long ago. At present Pakistanis have to pay 208 rupees per dollar.
Business Desk
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Not only Pakistan, but also Bangladesh, India and Japan are witnessing a sharp rise in the value of the dollar against the state currency. It was trading at 135.19 yen against the dollar last week. The Indian rupee stood at 78.28 against the dollar. Meanwhile, the value of money against the dollar is hovering in the nineties.
Malik Bostan, chairman of the Forex Association of Pakistan (FAP), said the pressure on the Pakistani rupee was mounting due to delays in deals with the International Monetary Fund (IMF), weak reserves and delays in getting financial assistance from China. As a result, the value of the state currency is declining and the value of the dollar is rising.
"Right now we have to think about reserves," Malik said. We have to pay attention so that people do not go abroad unnecessarily. In any case, the dollar price should be brought down to a tolerable level.
India and Japan, meanwhile, have blamed Russia-Ukraine crisis and US inflationary measures for the depreciation of their national currencies.
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However, the Bank of Japan has relied on its monetary issuance program in line with its traditional practice. They think that this will make it possible to maintain the rate of economic growth. Takahide Kinouchi, a Japanese economist, said the fall in the value of the yen would lead to a difference in long-term interest rates between Japan and the United States.
In the case of India, the Reserve Bank has already raised the rupee by 50 basis points. This will increase the interest rate. But you have to pay more to repay the loan. The Reserve Bank has tried to stabilize the rupee by selling foreign currency.
Foreign exchange traders say the currencies of Asian countries are weakening day by day. With the rise in the value of the dollar, inflation in India has skyrocketed, while the prices of essential commodities have skyrocketed. Inflation in April was 7.79 percent, the highest in eight years. The government has stopped exporting sugar. Petrol-diesel prices have been increased a lot and then reduced again.
The situation is similar in Pakistan. The inflation rate there is 13.8 percent. It is said that with the amount of foreign currency currently in Pakistan's reserves, it is possible to cover the cost of imports for only two months.
The government has already started taking various steps to reduce foreign imports. Recently, Pakistan's senior minister Ahsan Iqbal came under fire for urging the country's people to reduce their drinking. The government is currently forcing the people to make such requests mainly to reduce tea imports.
Source: Dawn, BBC
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