The Canadian Dollar (CAD) has maintained a stable position against the Pakistani Rupee (PKR), trading at 202.20 PKR in the interbank market.
This consistency comes amid fluctuating global currency trends and Pakistan’s ongoing economic adjustments, providing a sense of predictability for businesses and expatriates.
1 Canadian Dollar= 202.20 Pakistani Rupee
Valuation Process Explained
The exchange rate between the Canadian Dollar and the Pakistani Rupee is determined by market forces of supply and demand in the foreign exchange (forex) market. Several key factors influence this rate:
- Trade Balances – Canada’s exports to Pakistan, including pulses, machinery, and pharmaceuticals, alongside remittances from Pakistani expatriates in Canada, impact the demand for CAD.
- Interest Rates – The monetary policies of the Bank of Canada and the State Bank of Pakistan play a crucial role. Higher interest rates in Canada could attract more forex inflows, strengthening the CAD against the PKR.
- Economic Stability – Pakistan’s inflation, foreign exchange reserves, and political climate significantly affect the PKR’s valuation. Recent stabilization efforts by the government have helped prevent sharp depreciation.
- Global Markets – Since Canada is a major oil exporter, fluctuations in crude oil prices can influence the CAD’s strength. Additionally, the US Dollar’s movement indirectly affects the CAD-PKR exchange rate due to their correlation in global trade.
Forex traders, commercial banks, and the State Bank of Pakistan closely monitor these variables to ensure liquidity and stability in the currency market.
Impact on Pakistani Expatriates in Canada
The steady exchange rate is particularly significant for the large Pakistani diaspora in Canada, which sends billions of dollars in remittances back home annually. A stable CAD-to-PKR rate ensures that:
- Families in Pakistan Receive Predictable Support – With minimal fluctuations, expatriates can budget more effectively, knowing their remittances will maintain consistent purchasing power for their families.
- Encourages Higher Remittances – Stability reduces the fear of sudden currency losses, potentially motivating more overseas Pakistanis to send money through formal channels.
- Investment Decisions – A predictable exchange rate allows expatriates to make long-term financial plans, such as property investments or business ventures in Pakistan, without the risk of abrupt currency devaluation eroding their funds.
However, if the PKR were to weaken in the future, expatriates might benefit from higher rupee conversions, but this could also signal broader economic challenges in Pakistan, such as inflation or reduced foreign reserves.
CURRENCY RATES TODAY IN PAKISTAN
About the Currencies
- Canadian Dollar (CAD): The official currency of Canada, issued by the Bank of Canada, is one of the world’s most traded currencies. Known for its stability, the Canadian Dollar is heavily influenced by commodity prices, particularly oil, given Canada’s status as a major energy exporter.
- Pakistani Rupee (PKR): The national currency of Pakistan, regulated by the State Bank of Pakistan, has faced depreciation pressures in recent years due to trade deficits, inflation, and external debt burdens. However, recent IMF-backed reforms have contributed to relative stability.
