Courtesy:- MALIK MUHAMMAD ASHRAF
The finance minister has beaten the speculators at their own game
Depreciation in the value of the currency of a country against dollar or any other international currency with which they are linked or in which they pay for their imports and meet international obligations, is always a cause of worry for the governments due to its negative impact on broad spectrum of the population. In the same way, the appreciation in the value of a currency symbolises strength of an economy and generates positive economic activity in the country benefiting the masses due to its trickle down effect. Although fixing and maintaining the value of a currency is not the part of the economic strategies of the governments and it is mostly determined by the market forces, yet no government could afford to neglect the phenomenon. The slide in the value of a currency also becomes a political issue and the detractors of the government invariably use it to cavil at the inadequacies of the economic policies of the government.