Juna G
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China Bails Out Pakistan
This week #Pakistan and #China finalized a commercial loan agreement amounting to $3.7 billion restoring foreign exchange reserves to double digits from a critically low level of $8.9 billion the previous year.
The agreements may also enable Pakistan to fulfill the International Monetary Fund's target to conclude fiscal year 2024-25 with $14 billion in gross foreign exchange reserves
The agreement came at a crucial time when the rupee dollar parity had resumed its decline after a massive buying spree by the central bank. There was also a lack of foreign money in the market, causing the rupee to depreciate and forcing commercial banks to refuse to grant letters of credit for imports. The loans boost Pakistan's foreign reserves, potentially stabilizing the PKR (Pakistan Rupee). Moreover, a stronger rupee reduces the urgency for Bitcoin as a hedge against currency devaluation, at the same time it's an opportunity for Bitcoin buyers to preserve their investments while the PKR is stable and buy #USDT before the rupee value weakens any further.
Pakistani Bitcoin buyers should watch forex reserves, PKR volatility, and regulatory signals closely. If austerity measures bite or rupee stability falters, Bitcoin's hedge utility will resurge.
$BTC
$SOL
The agreements may also enable Pakistan to fulfill the International Monetary Fund's target to conclude fiscal year 2024-25 with $14 billion in gross foreign exchange reserves
The agreement came at a crucial time when the rupee dollar parity had resumed its decline after a massive buying spree by the central bank. There was also a lack of foreign money in the market, causing the rupee to depreciate and forcing commercial banks to refuse to grant letters of credit for imports. The loans boost Pakistan's foreign reserves, potentially stabilizing the PKR (Pakistan Rupee). Moreover, a stronger rupee reduces the urgency for Bitcoin as a hedge against currency devaluation, at the same time it's an opportunity for Bitcoin buyers to preserve their investments while the PKR is stable and buy #USDT before the rupee value weakens any further.
Pakistani Bitcoin buyers should watch forex reserves, PKR volatility, and regulatory signals closely. If austerity measures bite or rupee stability falters, Bitcoin's hedge utility will resurge.
$BTC
$SOL
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