The Pakistani Rupee has been falling against the US Dollar in the international currency market for months.
Its value dropped to the lowest on Friday, 12th November 2021 to 175.73 PKR to the US Dollar.
The Turkish Lira also dropped to an all-time low of 9.975 Lira against the US Dollar on Friday, 12th November 2021. It was by far the worst performer in the currency market as it lost more than a quarter of its value since May 2021. It has lost 2/3rd of its value in the last five years.
Iran’s Rial has been dropping continuously since November 2018 when the United States imposed a fresh set of sanctions against Iran. It has dropped 62% in its value since 2018.
Currently, 1 USD is equal to 42,275 Iranian Rial.
Under normal circumstances, currency fluctuates due to the following reasons:
• economy,
• inflation,
• exports,
• imports, etc.
A steep fall in the value of the currency happens due to the following reasons:
• low productivity (when a country does not produce enough things for there to be meaningful international trade)
• limited exports options (when a country can export a very few things)
• dependency on imports (when a country depends a lot on imports)
• rapid price inflation (as in the case of Venezuela earlier)