The State Bank of Pakistan is cognizant of the global developments related to markets and is keenly observing its impact on the domestic economy as well, said a statement issued by the Bank on Monday.
The other day, financial markets across the globe witnessed turbulence and the panic was most visible in the stock markets, it said. Earlier, the foreign exchange markets also had their share in this global turmoil. Since the start of devaluation of Chinese Yuan on 11th August 2015, currency depreciation around the globe, particularly in the developing countries, has accelerated. Many of these countries have allowed their currencies to depreciate primarily to maintain their trade competitiveness against China. Pakistan is also part of the global economies and cannot remain immune to the developments around the globe, the statement added.