The Pakistani Rupee (PKR) has experienced a significant decline against the UAE Dirham (AED). It has reached a closing interbank exchange rate of Rs. 79.36 on August 15, 2023. This might be due to the economic and political instability. The exchange rate has escalated from Rs. 78.55, marking an increase of Rs. 0.81.
The depreciation of the Pakistani Rupee is primarily rooted in the ongoing economic crisis fueled by political uncertainty. As the local currency weakens, the UAE Dirham has gained value against the Pakistani Rupee. The rates have been fluctuating due to the varying demand for foreign currency within the market.
Moreover, it is worth noting that incoming remittances are typically credited to customer accounts based on the prevailing interbank rate at the time, unless the sending bank specifies otherwise. This connection between remittances and exchange rates further underscores the significance of the Rupee’s decline.
The escalating exchange rate can have serious implications for various sectors of the economy, such as imports and exports to foreign investments. Moreover, the declining value of the Rupee will make it hard to trade globally, thereby impacting businesses and consumers alike.
