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Pc pkuploadsarchivesANNEXURE 7: PLANNING COMMISSION GUIDELINES ON CALCULATING

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The document outlines the guidelines issued by the Planning Commission of Pakistan for calculating the Pakistani Rupee (PKR) equivalent of the foreign exchange component in development projects. It emphasizes the need to use the Bank's Floating Average Exchange Rate from the State Bank of Pakistan for cost calculations, particularly in light of fluctuating exchange rates. The instructions are directed to various government bodies to ensure compliance and proper reporting during project evaluations.

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What do you mean by foreign exchange?

Foreign exchange is the conversion of one currency into another. The foreign exchange market, or the forex as it is often called, is the global marketplace for converting currencies at their current values, which rise and fall ing to changes in supply and demand.

What is an example of a foreign exchange?

The foreign exchange market is the market in which foreign currencysuch as the yen or euro or poundis traded for domestic currencyfor example, the U.S. dollar.

What is the foreign exchange component?

Foreign exchange markets are made up of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers, and investors.

What is the main source of foreign exchange?

1. Exports of goods and services:Supply of foreign exchange comes through exports of goods and services. 2. Foreign investment: The amount which foreigners invest in their home country increases the supply of foreign exchange.

What is the FEC foreign exchange component?

A forward exchange contract is an agreement between two parties to swap currencies and may involve a currency pair not readily accessible on the forex markets. FECs are traded over the counter with customizable terms and conditions.

What are the components of the foreign exchange market?

The exchange market is made up of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers, and investors that all trade currency pairs.

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What is the FEC foreign exchange component?

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What are the components of the foreign exchange market?

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