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, coins in denominations of one, two and five rupees are also in circulation. The only legal issuer of banknotes is the State Bank of Pakistan. It should be noted that back in 2008, a paper banknote with a face value of five rupees was withdrawn from circulation. To replace it, a coin of the same denomination was put into circulation.
In addition, commemorative coins in denominations of ten and twenty rupees also take part in circulation. As a rule, their release is dedicated to some memorable events in the history of the state or dedicated to prominent figures of the country. Most Pakistani paper currency is in olive, light brown and dark brown.
History of the currency
The Pakistani rupee was officially put into circulation in 1948. In monetary circulation, she took the place of the Indian rupee. The exchange rate of Pakistan to the Indian currency was then 1 to 1. The first denominations of the new money were the notes of the Reserve Bank of India, which wasmarked "Government of Pakistan". Over time, they were replaced by banknotes issued by the State Bank. At the same time, Indian notes remained legal tender until October 1948, and coins were in circulation until July 1951.
It should be noted that the original currency of Pakistan called the rupee consisted of 16 annas, or 64 pice. One paisa was equal to three paisas. Thus, one rupee consisted of 192 shares. In 1961, it was decided to equate the Pakistani rupee to one hundred paise. It should be noted that until July 1966 parity was maintained in the exchange rate between the Pakistani and Indian rupees.
In the 80s and 90s of the twentieth century, the Pakistani rupee was subject to significant inflation. Already by 2001, the exchange rate of the local currency against 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. For 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.
Appearance of Pakistani money
The front side of all paper banknotes of the Pakistani rupee contains the image of a Muslim politician, the founder of the statehood of several countries in South Asia, as well as the ideologist of the division of British India - Muhammad Ali Jinnah.
Withdrawal of coins from circulation
At the end of February 2014, the main financi althe institution of the country announced plans to withdraw from circulation coins in denominations of one, two, five, ten, twenty-five and fifty pice. These banknotes could be exchanged at the branches of the State Bank of Pakistan until September 30 of the same year. As early as October 1, 2014, metal pice lost the status of legal tender in the country.
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 prominent figures. In this sense, Pakistan is no exception. For example, in 2008, a cupronickel coin worth ten rupees was issued. Its release was timed to coincide with the anniversary of the tragic death of former Pakistani Prime Minister Benazir Bhutto. In 2011, several commemorative coins were put into circulation at once, which are legal tender. For example, a twenty-rupee coin made of cupronickel. Its issue was dedicated to the friendship between Pakistan and China.
Banks in Pakistan and currency exchange
What is the currency in Pakistan today and how to get it? In this country, a rather unusual mode of operation of financial institutions is practiced for residents of European countries. So, from Monday to Thursday and on Saturday, banks are open from 9 am to 13:30 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 buy rupees at private exchange offices.It should be noted that the most favorable conditions are offered when handing over new Pakistani rupees. At the same time, if guests of the country or tourists want to exchange the local currency of previous series or banknotes that have obvious signs of wear, then the rate for such banknotes will be significantly lower.
By the way, when exchanging foreign banknotes for the currency of Pakistan, preference should be given to rupee banknotes of small denominations. The fact is that in most outlets there are often difficulties with issuing change from banknotes in denominations of one thousand or five hundred rupees. This problem is most relevant in small provincial settlements.
In addition, it is not uncommon for merchants to 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 fees in the banknotes of other states, and only if there is an appropriate agreement.