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Currency Rates in Pakistan – According to the Forex Association, the latest currency exchange rates in Pakistan for 28 March 2022 are US Dollar: PKR 183.10, Euro: PKR 201.00, British Pound: PKR 240.00, Saudi Riyal: PKR 48.75, UAE Dirham: PKR 50.20, and Australian Dollar: PKR 137.00.
Open Market Rates in Pakistan
An open market is essentially any country’s market to which all economic players have access and can conduct trade without the tension of extraneous restraints. An open market allows for unfettered trade between countries in layman’s terms. In the banking market, open markets allow for exchanging assets between countries.
The term “open” in the context of an open market refers to the following qualities of any market:
- The scope of the competition
- Any type/quantity of cultural restrictions that may impede trade
- The number of rules imposed by the government on specific markets.
These are the general restrictions that make trade difficult. The less impact the following have on a country’s market, the more open that country’s market is. All economic participants have an equal opportunity to purchase and sell currency, goods, assets, and so on in an open market. An open market is devoid of taxes, subsidies, and levies, allowing more entities to participate in the market. Canada, Australia, Western Europe, and the United States have the most open markets globally. In contrast, North Korea, Brazil, and Cuba have more tight markets, enabling fewer economic actors to trade in the market.
Aside from buying and selling things, currencies are also transferred between open markets in various countries. International banks, the most well-known of which are Deutsche Bank, Barclays, HSBC, Standard Chartered, and Citi, determine currency exchange rates in the global market. Every country’s central bank sets the exchange rate of its currency daily, known as Foreign Exchange Fixing.
How Currency Exchange Works
Foreign exchange dealers decide the rate exchange currencies. The currency exchange rate essentially tells us how much our money is worth in foreign currency. If we wish to buy or sell a currency, the exchange rate tells us how much we would have to pay. The exchange rate also indicates whether a currency is strengthening or decreasing. Before exchanging your currency, you should know the market’s buying and selling rates for the currency in rate. National banks often offer the most excellent rates. However, money can be exchanged at money changers in every country.
Currency Exchange in Pakistan is Available At:
- Pay Exchanger, Lahore
- Apni Exchange, Lahore
- Ravi Exchange, Lahore
- AA Exchange, Lahore
- Paragon Exchange, Lahore
- Western Union
- Dollar East Money Changer
- Link International Exchange Co Pvt Ltd
- Habib Qatar International Exchange Pakistan
- Pakistan Currency Exchange Co Pvt Limited
- Wall Street Exchange Co Pvt Ltd
Elements Affecting Exchange Rates
Three things influence any country’s exchange rate;
- Investors buy high-value currency and then deposit it in a bank to get a high-interest rate. High-interest rates add more worth to the money. Usually, investors worldwide would buy any currency based on the interest rate paid on that currency by that country’s central bank.
- When there is an excess of the money supply due to overprinting of currency, more money is available but fewer commodities to be purchased. This causes money to be bid on and the currency to be devalued, decreasing the currency’s exchange rate.
- Any country’s economic growth rate and financial stability drive up the exchange rate of its currency on the global market.
The Difference in Interbank Currency Rates
Currency exchange rates in the open market differ from those in the interbank market. Banks worldwide must keep liquid assets on hand to cover client withdrawals and payments, which is why interest is paid when purchasing or selling currency. Because of the increased interest, banks usually demand a higher exchange rate on the currency. It is appropriate for investors to go to a bank for currency exchange because they plan on reserving the money to make it double. Still, it is more practical for ordinary people to go to local money exchangers to receive a fair deal for their money.
The effect of Exchange Rates on the Economy
A country’s economic growth and its currency exchange rate are directly linked. The bigger a country’s currency exchange rate, the better its economic growth. More global investors will buy its goods and services if a country’s economy is robust, resulting in more excellent currency purchases.
Because Pakistan’s economy has been in flux for a long time, our currency has continued to depreciate, causing currency exchange rates to fluctuate. When the new government assumed office, the dollar price was decreased by four points, but it has since risen by nine rupees, putting a price on Pakistan’s economy. There is no profit margin for those in Pakistan who want to buy or sell foreign currency. When we buy foreign currency, we get a lower return. Similarly, if we sell foreign currency, we receive less. This applies to currencies with a higher exchange rate than the Pakistani Rupee.
You can find open market currency exchange rates for the US Dollar in Pakistan and all major currencies such as the Euro EUR, British Pound GBP, Saudi Riyal SAR, UAE Dirham AED, Canadian Dollar CAD, and Chinese Yuan.