If we talk about banking the Interbank Market is considered as the most discussed and followed exchange market where banks exchange different currencies from all around the world. Either banks deal one another directly or through electronic brokering platforms. The currencies of all the countries are influenced by the currencies of the developed countries. The most developed countries have floating exchange rates. This is the reason for which the currencies do not have any fixed values rather values fluctuate with respect to the currencies of other countries.
If we specifically talk about interbank market it is the most important part of foreign exchange market. It is actually a whole sale market from where most currency transactions are controlled. The main purpose of interbank market is the trading among bankers. It is an autonomous and dispersed market. There is no particular place where interbank transaction takes place where as foreign currency options are controlled in the United States.
Particularly speaking about Interbank rates these are the rates of interest charged on short-term loans made between banks. Banks lend and borrow money in interbank market just to manage liquidity and meet the requirements placed on them. The interest rate that is charged over is proportional to the availability of money in market, fundamental rates, and the specific terms of the contract, such as term length. For foreign exchange rate the most common term used is Forex and it helps international trade and investment.
Another major factor that influences the exchange rates is Central bank that alters the interest rates and set currency exchange rates accordingly. When Central bank increases the interest rate traders automatically get stimulated for buying their currency because it will provide them high return over investment and this phenomenon helps to drive the Central Bank’s currency higher with comparison to other currencies.
With respect to Pakistan the interbank market currency exchange rates are available for major currencies including USD Dollars, Euro GBP and in other currency money exchange rates. With these rates you can easily observe the relation between the exchange rates of Pakistan with specific countries that you might be interested in.
Here we provide you the InterBank Currency Exchange Rates in Pakistan with respect to different highly developed countries including Europe (EUR), Thailand (THB), Sweden (SEK), Singapore(SGD ),Hong Kong(HKD), U.A.E.(AED), Switzerland(CHF), Saudi Arabia (SAR), Denmark(DKK), Japan(JPY), Australia (AUD), Canada(CAD), U.K.(GBP), U.S.A. (USD)