Picture: Business Recorder
Japan’s biggest brokerage and investment bank, Nomura Holdings has warned that Pakistan may face currency crisis soon. According to the economists at Nomura, the seven countries that are at the highest risk of a currency crisis include Romania, Sri Lanka, Egypt, Pakistan, Turkey, the Czech Republic, and Hungary.
An economist from the holding company said, “This is the highest total score since July 1999 and not too far from the peak of 2,692 during the height of the Asian crisis.”
Nomura explains that based on the data, a score of 100 and above indicates that a country is likely to face currency crisis in the next 12 months.
Amongst the seven countries highlighted, Egypt has the lowest score of 165. Egypt’s currency has already devalued twice in 2022 and now it is requesting for an IMF bailout program.
Pakistani currency too has failed to uphold the previous gain in the value of rupee yesterday. It recently fell to 0.17%, standing at Rs. 223.81 against a dollar. This is the lowest in the last six weeks.
Pakistan has been struggling financially and economically since the start of this year. The rupee value was decreasing very fast initially, however, the recent government policies played a major role in controlling it. The situation still does not seem to be under control and the currency is not stable yet.
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