Case

Educator Copy

THE RISING DOLLAR & THE PAKISTANI RUPEE : MR KAZI DECISION

QURESHI U

INDUSTRY :FINANCE

AREA :MANAGERIAL ECONOMICS

ORGANIZATION :-

LENGTH :20

LUMS No :11-070-87-1

PUBLICATION YEAR : 1987

DESCRIPTION

ABSTRACT:

The upward trend in the US dollar brought a concurrent rise in the Pakistani rupee against other currencies. The Governor, State Bank of Pakistan feared that if this trend continued it would reduce the competitiveness of Pakistani goods in international markets and hence would lead to a serious slowing-down of export growth in the economy. The case presents basic policy issues and the options available in such a scenario.