The Pakistani rupee has been swinging up and down since the start of the year, but for the last few months, its downward slide steepened, as it shattered all previous records owing to a host of reasons.
The crash is even more pronounced because the government has been assuring the market that the staff-level agreement reached with International Monetary Fund (IMF) will keep the country afloat for the rest of the fiscal year; however, the currency movement did not reflect the expectations of the government.
The situation seemed to be reversing after the IMF Executive Board’s allowed to release more than $1 billion loan tranche.
Countries like Pakistan cannot imagine an economy without dollars, but the situation is heading fast in this direction and policymakers either look helpless despite securing financing from friendly countries.
However, the alarming situation of weakening currency is not the issue being faced by Pakistan alone. There are a host of other countries — dubbed emerging markets — that are facing a similar currency weakness, which is making their economies unstable and investors pensive.
Topline Securities compiled data of some regional countries; lets a look at some of the top regional countries and how much value has their currencies lost since 2022: