She said the current programme required a market determined and flexible exchange rate
and strengthened central bank focused on exchange price stability.
The International Monetary Fund (IMF) on Wednesday approved $6 billion bailout package for Pakistan after the country agreed to enforce flexible exchange rate
, enhance taxes and end circular debt -the weaknesses that have remained unaddressed despite availing nearly two-dozen programmes.
Does devaluation lead to an increase in prices This is a critical question that policy-makers in Pakistan have faced continuously over the past three decades or so, and particularly since 1982, following the adoption of a flexible exchange rate
Baqir's immediate responsibilities will be to roll out policies set out by the IMF including implementing a flexible exchange rate
regime, reducing the government's reliance on central bank borrowings and ensuring transparency in many loans transactions.
More specifically, real output growth exceeded expectations, inflationary pressures that emerged after the transition to a flexible exchange rate
regime began to abate, and investor confidence picked up.
ISLAMABAD -- The International Monetary Fund (IMF) has classified Pakistan's existing exchange rate as 'stabilized arrangement' and asked Islamabad to move towards adopting a market-based flexible exchange rate
with a strong, transparent and accountable central bank as exists in other emerging markets of the world.
A flexible exchange rate
acts as an automatic stabilizer in two ways.
As central bank seeks to adopt a flexible exchange rate
policy from January 2019, the government finally acted on Friday to soothe unnerved markets and signalled that it would not bring further fluctuation in the exchange rate and monetary policy in the short term.
'With gross international reserves equivalent to about seven months of imports, a steady source of foreign exchange inflows led by remittances, business process outsourcing industry revenues and tourism receipts, a flexible exchange rate
policy and overall prudent management of the country's external accounts, the economy shall remain resilient amid global volatilities,' he said.
Besides this, the government will also be working to boost the competitiveness of the Egyptian economy through adopting a flexible exchange rate
system, the minister said.
WASHINGTON, May 17 (KUNA) -- International Monetary Fund's Chief Christine Lagarde welcomed South Korea's decision to publish data on foreign exchange intervention, no Thursday, as a "strong message about commitment." In a statement, Lagarde, Managing Director of the IMF, said of Seoul's major policy shift that would enhance transparency and ease concerns that it is involved in currency manipulation to boost exports: "It delivers a strong message about commitment to a flexible exchange rate