![]() ![]() We get lesser amount in return if we purchase foreign currency. 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. ![]()
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