History of forex market in pakistan

By: Sift Date: 25.05.2017

The rupee is symbolised by Rs and has a currency code of PKR. Single rupees are issued as coins, and the currency has banknotes of Rs10, Rs20, Rs50, Rs, Rs, Rs and Rs There is evidence that the area that is now Pakistan has been inhabited for at least , years, and possibly longer. The first evidence of permanent human settlements in the region, however, dates back 9, years to the Mehrgarh culture and later to the Indus Valley civilisation that took hold in the area around 3, B. From about 1, B.

From about A. Texts from the reign of Indian emperor Chandragupta Maurya in fourth-century B. This coin remained in usage into the British occupation of South Asia in the s, which became known as the British Raj.

It was in this period, with the establishment of banks such as the Bank of Hindustan and the Bengal Bank, when paper currency denominated in rupees was first issued.

The rupee, from its first minting some years earlier, had been issued and backed by silver. The discovery of large quantities of silver in the U. In , the government of the Raj adopted the gold standard, fixing the rupee to the British pound at a rate of 15 to 1.

history of forex market in pakistan

In , the government of the Raj established a central bank, the Reserve Bank of India in Calcutta, which had the responsibility of issuing banknotes. During the Second World War, the bank issued a one-rupee note.

In , the region of Pakistan broke off from India and gained independence from Britain under a plan aimed at separating the territories of South Asia that had Muslim and Hindu majorities. Pakistan was created as a homeland for the Muslim majority of the northern portion of the region while India became the homeland for the Hindu majority there.

history of forex market in pakistan

Initially, Indian banknotes circulating in Pakistan were simply stamped with the word Pakistan, but soon after the country issued its own banknotes. Upon its independence, Pakistan remained a part of the so-called Sterling Area of nations that pegged their currencies to the British pound. The Pakistani rupee was pegged directly to the British pound until , when the government began a managed float of the currency.

The creation of the committee was authorised in November by an amendment to the State Bank of Pakistan Act, and it held its first meeting in January More recently, however, internal political disputes and low levels of foreign investment have led to slower growth and underdevelopment in the country. Its top exports are textiles, rice, leather goods, sporting goods, chemicals and manufactures, among others.

It has also held talks on agreements with both the EU and the U. In addition to its commercial significance, Pakistan has drawn global attention as one of only nine nations in the world to hold nuclear weapons technology, which it began to develop aggressively in in response to its defeat in the Indo-Pakistani war.

The country made its first test of a nuclear weapon in Foreign exchange and financial trading in Pakistan are regulated by the Ministry of Finance, the State Bank of Pakistan, and the Securities and Exchange Commission of Pakistan. Important legislation related to financial trading in the country includes the Bank Company Ordinance of , the Negotiable Instruments Act of , the State Bank of Pakistan Act of , the Foreign Exchange Manual, the Financial Institutions Ordinance of , and prudential regulations.

The Pakistani rupee is commonly traded in pairs with major world and Asian currencies, including USD, BRL, CAD, AUD, EUR, GBP, JPY, CNY, INR and RUB. Since its introduction, the Pakistani rupee has been issued as coins and cotton-based paper money.

Coins are manufactured at the Pakistan Mint, which is also subordinated to the government. Coins in current use include Rs1, Rs2 and Rs5.


In the last decade, the country has negotiated currency swap agreements with countries such as China, Turkey, Russia and Sri Lanka to facilitate trade and currency exchange. Despite a diversified economy and industrial sector, growth and activity in the country have lagged in recent years.

Official unemployment has hovered around 7. In November , the Pakistani government agreed to an International Monetary Fund standby loan to prevent a balance of payments crisis. Although the economy has improved, it continues to underperform and foreign investment has not returned to levels seen during the mids.

This is due to concerns related to corporate governance, electricity shortages and a sluggish global economy. Despite resuming an agreement with the IMF and receiving a favourable appraisal from the institution, economists note Pakistan has remained stuck in a low-income, low-growth cycle, with growth averaging about 3. These issues restrict economic growth needed to create jobs for a growing and urbanising population, more than half of which is under adult age.

Additionally, Pakistan faces challenges to expanding investment in healthcare and education, adapting to problems brought by natural disasters, and reducing dependence on donations from foreign countries. Leverage can work against you. Be aware and fully understand all risks associated with the market and trading.

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Open Market Currency Rates in Pakistan

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Foreign Exchange (Forex) Open Market Rates of Pakistan, Todays Forex Rates of Pakistan, Open Market Forex Rates

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