Why does the Pakistani rupee lose value when USD reserves fall, compared with reserve declines in other currencies?

Asked May 2, 2019· 1 answer ·Indian Subcontinent, Pakistan, Pakistani Rupee, South Asia, United States Dollar
Faisal KhanAnswered May 2, 2019

Most of the trade is US Dollar denominated and so are our payment (debt) obligations.

The liquidity of the US Dollar has a direct impact. It is not that the Pakistan currency loses its value (whilst technically you are 100% correct), what happens is demand exceeds supply and hence the price people are willing to be for 1 US Dollar goes up!

Currency ExchangeExchange RatesForeign Exchange (FX)FX Rates Indian SubcontinentPakistanPakistani RupeeSouth AsiaUnited States Dollar
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