Business

US Dollar plunges to all time high in the interbank

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Web Desk

4 years ago

KARACHI: Further devaluation of Pakistani Rupees has strengthened the United States (US) dollar. With a 1.64 rupees increment, US Dollar plunges to an all-time high by 205.50 PKR in interbank, on Tuesday.

On September 17, 1971, right after the partition of East Pakistan, the government of Pakistan opted for US dollars as the country’s foreign exchange currency. After the independence in 1947, one dollar was equal to 3.71 rupees which were the lowest ever recorded in history. At that time the country’s foreign exchange currency was Great Britain Pound (GBP).

During the Zia ul Haq era, the US Dollar elevated for the first time in the history of Pakistan. After Breton wood System collapsed the country whose foreign exchange currency was in USD was obliged not to fix the dollar rates. 2008 was termed the disastrous year for Pakistan when the country lost 23 percent of its value against the USD. The US war in Afghanistan, and the significant incident of 9/11 in the United States, pushed the dollar to its peak in 2008.

After Imran Khan was ousted on April 09, the newly formed Shehbaz Sharif government faced challenges managing the country. USD with the fuel prices have increased to the country’s highest. The International Monetary Fund (IMF) suspended its loan to Pakistan in 2020 after the country failed to meet the conditions. To meet the conditions, the current government plans to raise commodities prices, including the dollar and fuel prices.

Web Desk