For people in Pakistan, who want to buy or sell foreign currency, there is no margin for profit. When the new government took over recently, the price of Dollar was reduced by 4 points but now again the price has gone up by 9 Rupees giving a hard time to Pakistan’s economy. The economy of Pakistan has not been in a stable position since a long time due to which our currency continues to devalue hence leading to change in currency exchange rates. If the economy of a country is strong then more global investors would purchase its goods and services hence buying more of its currency. Greater the currency exchange rate of a country greater the economic growth of that country. The economic growth of a country and its currency exchange rate has a directly proportional relationship. It is suitable for investors to head to bank for currency exchange since they plan on reserving the money to make it double but for common people it is more feasible to visit local money exchangers to get a good deal for their money. Banks worldwide have to hold liquid assets to put up with the withdrawal and payments on the part of clients due to which interest is added when it comes to currency purchase or selling. Banks usually charge a higher exchange rate on the currency because of the added interest to it. The economic growth rate and financial stability of any country push up the exchange rate of its currency in the global market.Ĭurrency exchange rates in open market are different from interbank rates.This leads to bidding of money and devaluation of the currency hence lowering that currency’s exchange rate. If there is too much of money supply because of over printing of currency, more money is available but goods to be purchased are less.Investors purchase high value currency and then save it in bank to keep on receiving high interest on it. More value is imparted to the currency by high interest rates. Usually investors around the world would buy any currency depending on the interest rate being paid on the currency by the central bank of that country.Habib Qatar International Exchange PakistanĮxchange rates of any country are affected by three factors.
#Open market currency rates in pakistan free
An open market is free of tariffs, subsidies and levies, which ensures the participation of more entities in the market. Open market gives equal opportunity to all economic players in the buying and selling of currency, goods, assets etc. The lesser the impact of the following on market of any country, the more open is the market of that country. Generally these are the constraints that make trade difficult. The number of regulations, government imposes on these markets.Any sort / number of cultural constraints which might hinder the trade.The word “open” in open market generally refers to the following characteristics of any market In terms of banking, open market allows the transaction of assets between countries. In easy words open market basically allows free trade between countries. An open market is basically that market of any country to which all economic players have an access to and can do the trade without the tension of extraneous constraints.
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