One of the worst-performing currencies globally in 2023 has been the Pakistani rupee, having lost considerable ground against major currencies, including the US dollar and the Sri Lankan rupee.
According to financial analysts, the decline in the value of the Pakistani rupee is due to a combination of factors, including economic instability, political uncertainty, and rising inflation.
In comparison, the Sri Lankan rupee has performed relatively better, despite being hit by similar challenges. Sri Lanka’s central bank has implemented measures to stabilise the currency, including interest rate hikes and import restrictions.
These measures have successfully prevented the rupee from losing too much value.
However, the situation in Pakistan remains more challenging, with the country grappling with high inflation, slow economic growth, and political instability. This has put significant pressure on the Pakistani rupee, which has lost nearly 10% of its value against the US dollar this year.
The economy of Pakistan is also impacted by the rupee’s depreciation, notably in terms of how much-imported products and services cost.
This has led to rising prices for consumers and businesses, further exacerbating the country’s economic challenges.
