This view was predicated on reasonable balance of payments and real exchange rate calculations that seemed to imply that a 50 percent devaluation, in real terms, was more than enough. Therefore, if we ...
Tariffs influence exchange rates by altering trade flows and affecting the demand for currencies. Tariffs can favor a stronger domestic currency by reducing imports and improving the trade balance.
The balance of payments is a double-entry accounting ... is particularly sensitive to exchange rate fluctuations. This often results in short-term deficits or surpluses from excess payments ...
A balance of payments crisis is a broader concept that involves a shortage ... Furthermore, although most of the theoretical literature concentrates on attacks against a pegged exchange rate regime, ...
Pakistan’s external sector is under severe strain, with a persistent balance of payments crisis driven by chronic trade deficits, external debt pressures, and a volatile exchange rate.