The US dollar continues to depreciate against the rupee as it has reached the level of Rs216 after depreciating by Rs 2.88.
On the last day of the business week, the market recorded a decrease of Rs 2.88 in the dollar value at the beginning of the business.
The continuous decline of the dollar has raised many questions what are the reasons behind it?
What are the reasons for dollar’s depreciation?
According to experts, the main reason for the decrease in the value of the dollar is that the IMF has given a positive response regarding the loan, Chief of Army Staff General Qamar Javed Bajwa called the American authorities for the purpose of obtaining a loan. The subsequent statement issued by the IMF stating that all the steps on the part of Pakistan have been completed has increased the chances of the release of the next installment of the IMF loan. The action supported the value of the rupee.
According to economic experts, the joint statement of Pakistan’s Ministry of Finance and State Bank of Pakistan along with the statement of Pakistan’s non-default by JP Morgan also played a role in this regard, which indicated the improvement in the value of the rupee.
How much will the dollar depreciate?
According to the experts, if you look at the economic indicators and the import situation at this time, the value of the dollar should fall to 200 rupees. They also say that if imports remain low, the dollar may depreciate further this month.
What will people benefit from depreciated value of dollar?
According to economists, if the value of the dollar falls further, it will benefit the common man in the form of a reduction in the prices of oil and other food items, as Pakistan imports oil, edible oil, wheat, and pulses. Which became very expensive in Pakistan in the recent past due to the expensive dollar.
It should be noted that the inflation rate in Pakistan went up to 25% in the month of July due to the increase in the prices of oil products and the huge increase in the prices of food items.
What can the government benefit from a decrease in value of the dollar?
The biggest benefit to the government from the fall in the value of the dollar is that the general perception of the government will improve and people will get the impression that the situation is now under control because whenever the dollar If the price increases, the government is severely criticized.
According to the experts, when the prices of oil products and other things decreased due to the decline in the value of the dollar, it will necessarily reduce the rate of inflation, which will be for the benefit of the people. There will necessarily be political gain.
It should be noted that the reduction in the value of the dollar will benefit the government at the economic level because the stabilization of the value of the rupee will create economic stability and improve the economic indicators, which will lead to a better perception of the government in general. Degi was causing problems for the government due to the deterioration of economic indicators in the last several weeks.
