By Muhammad Luqman
The continuous weakening of Pakistani rupee has jacked gold prices to historic high of Rs 72,000 per tola (11.6 grams).
According to Sarafa Association, the nosedive of the Pakistan rupee vis-a-vis US Dollar was responsible for the unabated increase in the prices of yellow metal in this part of the world.
US Dollar appreciated against the Pakistani rupee in the inter-bank market on Wednesday with an increase of 30 paisa .Dollar closed at Rs 141.40 in the inter-bank market.
With the increase in the value of dollar, country’s debts have also increased by Rs 110 billion, according to media reports.
Economic experts believe , with the depreciation of Pak rupee, the local commercial enterprises are losing faith in the national legal tender and started using greenback as benchmark in their business deals, pushing the country towards de facto dollarisation of economy.
This trend is in line with what entrepreneurs in other troubled economies have been doing for decades. Cuba is the major example where despite US trade restrictions, the informal economy in the Caribbean country primarily relies on the US dollar.
