The currency in Pakistan is the local rupee. Paper banknotes are issued in denominations of ten, twenty, fifty, one hundred, five hundred, one thousand and five thousand. In addition, they have circulation and coins in denominations of one, two and five rupees. The only legal issuer of banknotes is the State Bank of Pakistan. It should be noted that back in 2008 a five-rupee banknote was withdrawn from circulation. To replace it, a coin of the same denomination was launched.
In addition, commemorative coins in denominations of ten and twenty rupees also take part in the turnover. As a rule, their release is dedicated to any memorable events from the history of the state or is dedicated to outstanding figures of the country. Most paper currency notes in Pakistan are made in olive, light brown and dark brown colors.
Currency History
The Pakistani rupee was officially put into circulation in 1948. In monetary terms, she took the place of the Indian rupee. The exchange rate of Pakistan to the Indian currency was then 1 to 1. The first banknotes of the new money were banknotes of the Reserve Bank of India, which was marked "Government of Pakistan." Over time, they were replaced by banknotes issued by the State Bank. At the same time, Indian bills remained legal tender until October 1948, and the coins participated in circulation until July 1951.
It should be noted that initially the currency of Pakistan with the name rupee consisted of 16 annas, or 64 paise. One paice was equal to three shares. Thus, one rupee consisted of 192 shares. In 1961, it was decided to equate the Pakistani rupee with one hundred paisas. It should be noted that until July 1966, parity remained in the exchange rate relationship between Pakistani and Indian rupees.
In the 80s and 90s of the twentieth century, the Pakistani rupee was subject to significant inflation. By 2001, the exchange rate of the local currency to the US dollar was 63 to 1. Although, for example, in 1982 this ratio was at the level of 12.7 rupees per US dollar. Over the ten years from 1980 to 1990, the monetary unit of Pakistan lost its value by about 7% per year, and already in the first half of the 90s, the inflation rate almost doubled - 11% per year.
The appearance of Pakistani money
The front side of all Pakistani rupee banknotes contains the image of a Muslim politician, the founder of statehood in several countries of South Asia, as well as the ideologist of the division of British India - Muhammad Ali Jinn.
Coin withdrawal
In late February 2014, the country's main financial institution announced plans to withdraw from circulation coins in denominations of one, two, five, ten, twenty five and fifty paise. These banknotes could be exchanged at branches of the State Bank of Pakistan until September 30 of that year. Since October 1, 2014, metal paises have lost the status of legal tender in the country.
Commemorative coins
In many countries of the world, it is customary to issue commemorative coins dedicated to significant events in the life of the state or its outstanding figures. In this sense, Pakistan was no exception. For example, in 2008, nickel silver was issued in denominations of ten rupees. Her release was dedicated to the anniversary of the tragic death of former Pakistani Prime Minister Benazir Bhutto. In 2011, several commemorative coins were introduced into circulation, which are legal tender. For example, a coin made of cupronickel with a face value of twenty rupees. Her issue was dedicated to the friendship of Pakistan and China.
Banks in Pakistan and currency exchange
What currency is in Pakistan today and how to buy it? In this country, the mode of operation of financial institutions, quite unusual for residents of European countries, is practiced. So, from Monday to Thursday and Saturday, banks are open from 9 am to 1:30 pm. And on Friday - from 9:00 to 12:30. You can exchange foreign banknotes for Pakistani rupees at almost any local bank. In addition, exchange points are equipped in stores.
You can also purchase rupees at private exchange points. It should be noted that the most favorable conditions are offered for the delivery of Pakistani rupees of a new type. At the same time, if guests of the country or tourists want to exchange the local currency of the previous series or banknotes that have obvious signs of wear, then the rate for such bills will be significantly lower.
By the way, when exchanging foreign banknotes into the currency of Pakistan, preference should be given to rupee banknotes of small denominations. The fact is that in most retail outlets there are often difficulties in issuing change with denominations of a thousand or five hundred rupees. This problem is most relevant in small provincial settlements.
In addition, there are frequent cases when traders require tourists to pay for goods and services in foreign currency. It should be noted that such actions are illegal, since only large hotels and tourist centers have the right to officially charge in banknotes of other states and only subject to the availability of an appropriate agreement.