Us Dollar To Pakistani Rupee In Open Market
The US dollar is one of the most widely used currencies in the world. It is used as a reserve currency by many countries, and it is also the most traded currency in the foreign exchange market. The Pakistani rupee, on the other hand, is the official currency of Pakistan. In this article, we will discuss the exchange rate of the US dollar to Pakistani rupee in the open market.
What is the open market?
The open market refers to the unofficial or unregulated market in which currency is traded. In Pakistan, the open market is also known as the parallel market or the black market. It is called the black market because the exchange rate in the open market is usually higher than the official exchange rate set by the State Bank of Pakistan. The open market is where most people in Pakistan buy and sell foreign currency.
Factors affecting the exchange rate
Several factors can affect the exchange rate of the US dollar to Pakistani rupee in the open market. One of the most important factors is the demand and supply of the currency. The exchange rate increases when there is more demand for the US dollar in Pakistan, and it decreases when there is more supply of the US dollar.
Other factors that can affect the exchange rate include inflation, political stability, economic growth, and interest rates. High inflation, political instability, and slow economic growth can lead to a decrease in the value of the Pakistani rupee. On the other hand, high-interest rates can attract foreign investors to invest in Pakistan, which can increase the demand for the Pakistani rupee.
Current exchange rate
As of September 2021, the exchange rate of the US dollar to Pakistani rupee in the open market is around 170 Pakistani rupees for one US dollar. This exchange rate is subject to change depending on the factors mentioned above.
Why do people buy US dollars in Pakistan?
People in Pakistan buy US dollars for various reasons. One of the most common reasons is to pay for goods and services that are priced in US dollars, such as international flights or online purchases. US dollars are also used as a store of value, especially during times of economic uncertainty. Many people in Pakistan believe that holding US dollars is safer than holding Pakistani rupees because the value of the Pakistani rupee can be volatile.
Conclusion
The exchange rate of the US dollar to Pakistani rupee in the open market is subject to various factors, such as demand and supply, inflation, political stability, economic growth, and interest rates. As of September 2021, the exchange rate is around 170 Pakistani rupees for one US dollar. People in Pakistan buy US dollars for various reasons, such as paying for goods and services priced in US dollars or as a store of value. The open market is an important market in Pakistan, where most people buy and sell foreign currency.