There are multiple factors involved in dollar volatility: Chairman FBR

 The Chairman of the Federal Board of Revenue (FBR), has recently stated that there are multiple factors involved in dollar volatility in Pakistan. In an interview, he emphasized that it is important to understand these factors in order to address the issue and stabilize the economy.

The value of the Pakistani rupee has been fluctuating against the dollar for some time now, and this volatility has caused concern among economists and policymakers. The value of the rupee has been affected by a number of factors, including trade deficit, inflation, and political instability.

One of the major factors contributing to dollar volatility is the trade deficit. Pakistan has a high trade deficit, which means that the country imports more goods than it exports. This results in a high demand for dollars, which drives up the value of the dollar and weakens the rupee. The Chairman of FBR stated that in order to address this issue, the government needs to focus on increasing exports and reducing imports.

There are multiple factors involved in dollar volatility: Chairman FBR

Inflation is another factor that contributes to dollar volatility. High inflation can lead to a decrease in the value of the rupee, as the purchasing power of the currency is reduced. The Chairman of FBR highlighted the need to control inflation in order to stabilize the economy.

Political instability is another factor that contributes to dollar volatility. Instability can lead to a decrease in investor confidence, which can result in a decrease in the value of the rupee. The Chairman of FBR emphasized the need for political stability in order to attract foreign investment and stabilize the economy.

Another factor that contributes to dollar volatility is the interest rate. The interest rate is the cost of borrowing money and it is a major factor that can affect currency exchange rates. High-interest rates can lead to a decrease in the value of the rupee, as investors are more likely to invest in currencies with higher interest rates. The Chairman of FBR stated that the government needs to maintain a balance between the interest rate and inflation to stabilize the economy.

The Chairman of FBR also highlighted the importance of the global economic situation. The value of the dollar is affected by the economic conditions of other countries, particularly the United States, which is the world's largest economy. Economic conditions in other countries can also affect the value of the rupee.

In conclusion, there are multiple factors involved in dollar volatility in Pakistan. The Chairman of FBR has emphasized the importance of understanding these factors in order to address the issue and stabilize the economy. Factors such as trade deficit, inflation, political instability, interest rate, and global economic situation all play a role in the fluctuation