Photo Credit: Reuters
NDTV: Pakistan Rupee Slumps To Record Low, Crisis-Hit Nation Seeks Bailout
Pakistans money exchange companies removed the limit on the dollar-rupee rate, and said they will let the local currency drop slowly in the open market.
New Delhi: Pakistan’s currency fell to a record low of ₹ 255 against the US dollar on Thursday, according to local media reports. The tumble comes after the cash-strapped government relaxed its grip on the exchange rate to win much-needed loans from the International Monetary Fund (IMF).
Pakistan’s money exchange companies removed the limit on the dollar-rupee rate from Wednesday, and said they will let the local currency drop slowly in the open market.
Read more ….
Update #1: Pakistan staring at loan default, economic collapse (Hindustan Times)
Update #2: Cash-strapped Pakistan’s rupee plunges amid talks with IMF (AP)
WNU Editor: When US and allied forces were in Afghanistan, Pakistan was paid billions each year to be used as a gateway for weapons, aid, and personnel. This money disappeared when Afghanistan fell to the Taliban, and it is looks like that shortfall of money is finally coming home to roost for Pakistan.
Comparisons to Sri Lanka are also now being made …. Is Pakistan going to default on debt servicing like Sri Lanka? (Devsdiscourse).