Currency relationship with other countries

01-01-2011
USD EUR GBP AED SAR KWD CAD AUD JPY BHD CNY

Buying
85.60 112.00 132.15 23.10 22.75 301.60 84.80 84.80 1.02 226.70 13.00

Selling
85.80 112.20 132.35 23.20 22.95 301.80 85.50 85.30 1.03 226.80 13.50

01-01-2012
USD EUR GBP AED SAR KWD CAD AUD JPY BHD CNY

Buying
89.90 116.00 139.00 24.40 23.90 316.50 87.20 91.10 1.157 234.00 13.00

Selling
90.45 118.00 141.00 24.90 24.20 318.50 89.00 92.70 1.167 235.50 13.50

15-02-2013
USD EUR GBP AED SAR KWD CAD AUD JPY BHD CNY

Buying
99.25 132.00 155.00 26.90 26.30 349.00 98.60 101.50 1.055 261.50 13.50

Selling
99.50 133.50 156.00 27.15 26.60 351.00 99.50 102.50 1.11 263.00 14.00

Reasons for decreasing Pakistani rupees value

Persistent adverse trade balance and disequilibrium in balance of payment are the main causes, which compels a country to devalue its currency against others countries. Major components of trade balance are exports and imports of a country. Adverse trade balance is generally the result of slackness in exports in comparison to imports. It might affect exports prices and thus wipe out all the edge that might be hoping to gain in the export markets through devaluation. The markets for Pakistans traditional export are inelastic, therefore devaluation may thus in fact give no big boost to their exports, because there is a small quantum of value added exports and major requirement is based on export of raw material.

Rupee drops by 7 per cent against major currencies due to inelastic balance of payment

The value of government debt is also influencing the Pakistani currency value. As recently years government has increase its debt so it is also causing decreasing value against other countries.

political instability Terrorism Trade and Payments