1 Dollar in Pakistani Rupees in 1947
Introduction
Pakistan gained independence from British colonial rule on August 14, 1947. At that time, the Pakistani rupee (PKR) was introduced as the official currency of the newly formed country. The exchange rate between the US dollar (USD) and the Pakistani rupee was fixed at a specific rate, which we will explore in this article.
The Exchange Rate in 1947
In 1947, the exchange rate between the US dollar and the Pakistani rupee was fixed at 1 USD = 3.30 PKR. This means that if you had 1 US dollar, you could exchange it for 3.30 Pakistani rupees.
Why this exchange rate was chosen?
The exchange rate was fixed by the Pakistani government in consultation with the International Monetary Fund (IMF). The rate was based on the value of the Indian rupee, which was the currency used in British India before Pakistan's independence. The Pakistani rupee was pegged to the Indian rupee at a rate of 1:1, and the exchange rate with the US dollar was calculated accordingly.
Impact of the Exchange Rate on the Economy
The fixed exchange rate of 1 USD = 3.30 PKR had a significant impact on Pakistan's economy in the early years of its independence. The country was heavily dependent on imports, and the fixed exchange rate made it difficult to adjust to changes in global commodity prices. This led to trade deficits and balance of payments problems, which the government struggled to address.
Conclusion
In conclusion, the exchange rate of 1 USD = 3.30 PKR in 1947 was a critical aspect of Pakistan's early economic history. While it was intended to provide stability and facilitate trade, it ultimately led to economic challenges that the country had to navigate in the following years. Today, the exchange rate between the US dollar and the Pakistani rupee is floating, and it is determined by market forces.
