The lowdown on the Pakistani rupee
After the British Raj faced dissolution in Pakistan in 1947, the Pakistani rupee was introduced. For the first year, these existed simply as British Indian coins and notes that were stamped over with the word ‘Pakistan’ but by 1948, brand new coins and banknotes were introduced. Similarly to its sister currency, the Indian rupee, the Pakistani rupee was originally divided into 16 annas, with 4 pice making up 16 annas. On January 1st 1961, the currency was decimalised and the rupee became subdivided into 100 pice, which were renamed as ‘paise’. Due to inflation, paise haven’t been issued in the country since 1994.
A look back at USD to PKR exchange rates
Up until 1982, the Pakistani rupee was pegged to the British pound, after which the government decided to turn it into a managed float. Between 1982 and 1983, the rupee devalued by 38.5%, and devalued the same again between 1987 and 88, largely as a result of this. With regards to the US dollar, the Pakistani rupee depreciated against the dollar up until 2000, after which the country’s current-account surplus increased the value of the rupee against the dollar. The rupee was stabilised by lowering the interest rate, in order to preserve the country's export competitiveness.
With the credit boom in Pakistan building since 2008, the country’s election of 2008 also had a huge effect on the value of the rupee, with it losing 23% of its value since December 2007 to a record low of 79.2 against the dollar. Foreign reserves fell to $2 billion, but had recovered to $17 billion by February 2011. From there, more than $10 billion was borrowed money with interest applicable, helping to strengthen the rupee. By February 2016, the Pakistani rupee was at 104.66 PKR to 1 US dollar, and as of June 2017, sits at 104.83 to 1 USD.