Exchange Rate Policy Must Seek Undervaluation!

PIDE Knowledge Brief No. 17:2020
Author: Abdul Jalil
Publication Year : 2020

In Pakistan, The Exchange Rate Policy Has Always Tended Towards Overvaluation (See Box 1). This Policy Has Led To Five Major Currency Crises, An Attack On Foreign Exchange Reserves, And An Eventual Imf Programme, Over The Last 30 Years (Haque And Hina, 2020).