Currency, the basic unit of exchange and the most dominant medium of purchasing goods and services is the basis of any country. In Pakistan, the currency is anything that serves as a medium of exchange, a store of value, and a standard of value in form of “money”. Coins and paper money has been the two forms of currencies since the naissance of the economic structure of the country. Today they are divided into Coins of one, two and Five rupee value and Paper Money Notes of: Five rupees, Ten rupees, twenty, fifty, one hundred, five hundred, one thousand and five thousand rupees.
Defining the Pakistan currency symbols:
In Pakistan, the rupee is referred to as the “rupees”, “rupaya” or “rupaye”. The sigh used to represent Rupee is: “₨”; and the code used to describe the currency of Pakistan at international businesses is “PKR”. The symbol “Rs.” is used on receipts. The issuance of the currency is controlled by the State Bank of Pakistan.
History Of Coins in Pakistan:
The distribution of the Pakistani rupee was put into place after the formation of the homeland in 1947. For a few first couple of months after the independent from the British Raj, Pakistan utilized Indian currency with the stamp of “Pakistan” on them.
The issuance of New Banknotes and Coins took place in the year 1948. At that time split up of the currency was organized according to that of Indian Rupee; 16annas, each of 4 pice or 12 pie identified (in English) paise (singular paisa) subsequently.
Decimalization of Currency Over the years:
The decimal system of currency originally took place in 1961, with the rupee subdivided into 100 pice. The issuance of coins which denominated in paise has not taken place since 1994. Also the same year, coins for 1, 5 and 10 pice took shape and later into 1 paisa, 5 and 10 paise coins.
Banknote issuing was taken over by the State Bank in 1953 and 2, 5, 10 and 100 rupees notes were issued. 50 rupees notes were added in 1957, with 2 rupees notes reintroduced in 1985. The use of rupee notes 1 rupee notes was until the 1980s.
Rupees 500 notes were introduced in 1986, followed by 1000 rupees the next year. Rs. 2 and Rs. 5 notes were replaced by coins in 1998 and 2002. 20 rupees notes were added in 2005, and in 2006, 5000 rupees came to existence.
The Current Trends of Currency in Pakistan:
The Currency in Pakistan today varies in size and color. For security purposes, all banknotes contain a watermark. Different types of security threads are also present in each banknote. On the larger denomination notes, the watermark is a picture of Muhammad Ali Jinnah on smaller notes there is a crescent and star.
The year 2008 has been termed a disastrous year for the rupee as it lost 23% of its value since December, 2007. Today Pakistani Rupee is rates at Rs. 86 per 1 USD. It is said that eventually the Pakistani rupee will start trading at 80 per US$.