With the way Rupee is getting devaluated every day it would not hurt to peg it againt a basket of currencies as oppose to the US Dollar.

The idea behind printing currency notes was that you peg it against gold bars and that in turn would add value to the printed notes.  Since there are not enough gold bars in the world and the large number of currency notes around the globe, every country in the world pegs it's currency to the US Dollar(AS if the US would act as the guarantor of any individual country's financial woes).

This gives currency speculators and vested interest the opportunity to ruin economies.  Some Asian countries like Malaysia have already moved away from US Dollar to a basket of currencies in order to stabilize their exchange rate.

The way Pakistani currency is moving it would be a good thing to de-link it from US Dollar. If that is not done i fear hyper inflation.

Tag: rupee usd devaluation sbp