The Pakistani rupee has lost value due to the higher demand for dollars in this country.
Muscat: Pakistani nationals from Oman who wish to send money home can take advantage of the higher exchange rate, which currently hovers around PKR 430 for a single Omani rial.
The currency lost value, explained Philip Koshy, managing director of Modern Exchange, a money transfer house in Oman, due to the higher demand for dollars in Pakistan, which in turn lowered the value of local currency.
“Due to the demand for dollars, the trend of the Pakistani rupee has been downward from PKR 424 to PKR 428 per Omani rial, so I’m not surprised that it hit the 430 mark and above. beyond, ”he said. “We don’t expect it to hit around PKR 440 per Omani rial, though – so we’ve provided rates around the range above.”
On Sunday, September 19, exchange offices offered rates between PKR 426 and PKR 428 per Omani rial. As a result of this decline, foreign exchange offices in Oman are seeing more customers coming to them during these times to send more money to their home country.
“Another issue that may have affected the value of the PKR is the government’s new budgeting, which calls for more investment both offshore and in-house,” Koshy said. “The market is therefore hungry for dollar currency. Moreover, whenever a country has a trade deficit, it has to balance it by buying dollars, which again lowers the value of a currency. Due to all these developments, we expect a good number of Pakistani nationals to come and send money. “
According to online currency converter XE, one Omani rial was valued at around PKR 437. Ramanuj Venkatesh, financial analyst in Oman, said that currency fluctuations depend on three main factors: demand and supply, the growth of a local economy, and exchange rate differences.
“In terms of demand and supply, if a country needs certain resources, it has to make sure it has funds readily available to pay for them,” he explained. “Here you have to see the strength of the currency and the demand it finds. If there is more demand for a currency, its exchange rate will be positively affected. So it affects currency fluctuations over time.
“A country’s gross domestic product, inflation, and economics also affect a currency. More inflation means more risk for a currency. If a country experiences higher inflation, its currency is more exposed to fluctuations. There has to be a balance between all these factors, ”he added.