USD to PKR (Dollar Rate in Pakistan Rupee) – The Dollar Price in Pakistan Today on 24 January 2023 is Rs. 231.24. The State Bank of Pakistan (SBP) publishes the interbank closing currency exchange rate for the US Dollar to Pakistani Rupee every day at the conclusion of the working day.
This USD to PKR (US Dollar to Pakistani Rupee Rate in Pakistan) is the inter-bank closing exchange rate as of today 24 January 2023, according to the State Bank of Pakistan (SBP).
DOLLAR RATE IN PAKISTAN
The US Dollar rate in Pakistan Today 24 January 2023 is Rs. 231.24.
.DOLLAR TO PAKISTANI RUPEE
The exchange rate between the US dollar and the Pakistani rupee changes virtually everyday. The conversion of the US Dollar to the Pakistan Rupee is based on open market prices set by currency exchange dealers in Pakistan. The dollar is currently at an all-time high against the Pakistani rupee. Stay tuned for the most up-to-date information on open market USD to PKR exchange rates.
WHAT IS USD TO PKR TODAY?
The value of the US dollar has climbed this week, while the Pakistani rupee has fallen by PKR -8.00, or -4.233 percent. The highest conversion rate of US Dollar to PKR was PKR 250.00 and the lowest was PKR 213.00.
For the last 30 days, the USD to PKR exchange rate fluctuated as follows: high PKR 246.00 and low PKR 213.00, with purchasing at PKR 246.00 and selling at PKR 250.00.
DOLLAR RATE IN PAKISTAN
The US Dollar is a widely accepted currency around the world. It is the United States’ legal tender and is frequently utilized in international trade. The PKR rates from the US Dollar are remained at 224.25 PKR, indicating that the US Dollar has a big impact in Pakistan. As the world’s primary reserve currency, the US Dollar is frequently utilized in international trade. As the International Monetary Fund changes its macroeconomic growth estimates and US commerce slows, the US Dollar is seen as inferior to other major currencies. However, the Pakistani rupee swings on a daily basis.
FACTORS AFFECTING THE DOLLAR HIKE
The international community has faith in the United States’ ability to pay its debts. The US Dollar (USD) is the world’s most powerful currency for enabling trade. The Pakistani Rupee (PKR) has fallen against the US Dollar due to a number of issues. The PKR is in the midst of a historic slump, with its value falling continuously for the past four years. This drop, however, has raised issues about the function of Pakistan’s currency regulator.
WHY PAKISTANI CURRENCY IS WEAK AGAINST THE USD?
The PKR has deteriorated as the trade gap has grown, with imports approaching $8 billion in December of last year. For months, the PKR has been weakening against the US dollar in the interbank currency market. According to local media, Imran Khan’s government is concerned about the downward trend since it indicates that the country is experiencing a severe economic crisis. The pressure on the PKR due to greater import costs, increased inflation, and trade deficits are the main factors affecting the currency exchange rate.
The value of the US dollar fluctuates around the world, but its impact on the PKR has been much greater due to growing import costs. According to a study released last month by the Pakistan Bureau of Statistics (PBS), the country’s oil and food import bill climbed by 73 percent to $14.97 billion from $8.67 billion in the same period last year, owing to higher international prices and the rupee’s significant depreciation. The devaluation of the currency has a significant impact on the country’s exports and imports. The depreciation of the currency allows for an increase in import expenses, while the higher exchange rates benefit the export industry.
However, this strategy is unsustainable and ineffective. If the value of a country’s currency is dropped indiscriminately, it indicates that the country’s economy is faltering, and the market has practically lost to its competitors. According to PBS data, the merchandise trade imbalance in November 2021 was $5.107 billion, up from $1.946 billion in the same month last year. In terms of value, this is the biggest trade deficit ever recorded in a single month. Economic stagnation and recession hamper the manufacturing process and generate market uncertainty, resulting in PKR depreciation. Furthermore, goods like as wheat and sugar, which the country used to export under the previous administration, are now being imported. This has far-reaching consequences.
THE IMF FACTOR
After a seven-year hiatus, Pakistan sought assistance from the International Monetary Fund (IMF) in 2008. And the country’s financial and economic dependence on the international fund body has only grown since then. While negotiating with Pakistan, the IMF makes stringent financial demands, with currency devaluation always at the top of the list. Regardless of the talks, the government must agree to a (even little) depreciation of the PKR.
Inflation is another major cause of currency depreciation. According to the Pakistan Bureau of Statistics, Pakistan’s consumer price index (CPI) climbed 13% from a year ago in January, the highest in two years. In a research published in October of last year, The Economist ranked Pakistan as the fourth most inflated country. Argentina, Turkey, and Brazil were all ahead of Pakistan. Two of the three countries with the highest inflation rates, according to the Economist, are not Pakistan’s trading partners. It means that when a country’s inflation rate is higher than that of its trading partners, the currency overvalues and finally devalues.
An estimated $10 billion is put into illegal money movements in Pakistan, such as tax evasion and deportation. Money laundering has an impact on financial institutions, which are critical to economic progress. It encourages crime and corruption, which lowers output in the real economy. Money laundering has tremendous influence over the world’s major financial markets, while the Pakistani currency is being devalued dramatically as a result of it.
As Pakistan tackles its current account deficit, remittances are crucial in meeting the country’s external finance needs. According to the State Bank of Pakistan (SBP), the country received $29.4 billion in remittances in fiscal year 2020-21, up from $23.3 billion in fiscal year 2019-20, implying that the Covid-19 outbreak resulted in an additional $6 billion in remittances. However, if remittances decline precipitously as a result of the widening gap between the interbank and open market rates, Hundi/Hawala incentives may rise considerably. Worryingly, remittances declined by 7% in November 2021, to $2.35 billion from $2.51 billion in October, according to the SBP, putting pressure on the USD’s value.
RECENT STABILITY IN USD VALUE
Last Monday, Pakistan received the second instalment of $1 billion from the IMF bailout program. The discovery is a lifeline for Pakistan’s economy, which is failing due to rising global oil and commodities prices. Attempts to increase tax revenue have almost certainly had the unintended consequence of causing inflation. Similarly, the repayment provided a shot in the arm for the PKR, which was losing ground versus the US dollar. According to trade experts, it’s a psychological phenomena that makes traders trust the government when they perceive a large increase in the national budget.
PREDICTIONS FOR THE USD IN PAKISTAN
The reason that the PKR value of the USD would reach 200 has been generally attributed to rising inflation. The most important element that could assist the USD gain further momentum versus the PKR is the latest IMF board meeting. Furthermore, the SBP’s stricter monetary policy, the fiscal-year 2022 budget, large trade deficits, and mounting import costs will all push the PKR lower.
Q. What is the rate of the US Dollar today in Pakistan?
A. US Dollar rate today in Pakistan is Rs 224.25. In the last 30 days, the rate of US Dollar is decreased.
Q. How much is 1 US Dollar to PKR today?
A. 1 US Dollar equals 224.25 Pakistani rupees. However, the rate fluctuates on a regular basis. It is a reason that it is crucial for investors to remain updated with the USD to PKR today rate.
Q. How to calculate USD to PKR exchange rate?
A. There are different methods to calculate the USD to PKR exchange rate. However, the simplest one is that first, you have to check the rate of one US Dollar in Pakistan. In the next step, multiply the rate by the amount in currency. For example, if one US Dollar is equal to 224.25 Pakistani Rupees then ten US Dollar will be equivalent to RS 2242.50.
Q. How can I exchange US Dollar to Pakistani rupees?
A. You can exchange US Dollar into Pakistani Rupees from money changers or currency exchange currencies. However, it is recommended to first view the latest USD to PKR rate to not become a victim of any fraud.
Disclaimer: We provide daily updates for Dollar to PKR exchange rates in Pakistan as provided by the State Bank of Pakistan (SBP). This is the official currency exchange rate provided by the banking regulator daily at the end of the working day.