Why is Pakistan’s currency volatile?


Why is Pakistan’s currency volatile?

nomi king 5 months 1 Answer 94 views

Answer ( 1 )

  1. Originally Answered: Why does Pakistan’s currency volatile?
    Pakistan currency following 2 types of exchange rates,on by State Bank of Pakistan and thus Pakistan commercial Banks follows daily rates set by State Banks of Pakistan. State Bank of Pakistan follows LIBOR ,London These rates e generally stable and not volatile. But State Bank of Pakistan also issues license to private money exchanges,they follows speculations people can buy and sell foreign currencies through them and there rates are volatile under certain limitations set by State Bank of Pakistan ,and these volatile rates are not genuine but based on speculation and fictitious demand and supply!. Almost all the world countries following these two types of money exchange rates.

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