FATF crushes Turkish Lira, Pakistani Rupee and Iranian Rial

The foreign money of Turkey, the Islamic Republic of Pakistan, and the Islamic Republic of Iran have been on a nosedive.The worth of the Turkish Lira has persistently declined for the final month.Pakistan goes by way of a torrid time on the financial entrance.The previous few weeks haven’t been good for Islamic nations – Shia or Sunni. The foreign money of Turkey, the Islamic Republic of Pakistan, and the Islamic Republic of Iran have been on a nosedive.The worth of the Turkish Lira has persistently declined for the final month. Currently, 1 US Dollar is equal to 12.72 Turkish Lira. Its worth has declined in double digits within the final one month, from round 10 Lira per USD to 12.72.  The main supply of international foreign money and one of many important components of the Turkish financial system was tourism, which collapsed with the onslaught of the Chinese virus. Exports to Arab international locations, the subsequent massive supply of American {dollars}, are additionally set to break down amid the calls of the boycott of Turkish items, and that is giving sleepless nights to Turkish.Similarly, the worth of the Pakistani rupee has persistently declined over the previous couple of weeks. IMF isn’t releasing the subsequent tranche of loans to the Islamic nation as a result of it’s but to ship on promised reforms. The foreign exchange state of affairs has been dismal for the previous couple of months and declined from 19.2 billion {dollars} to 17.2 billion {dollars} within the final month.Pakistan goes by way of a torrid time on the financial entrance. The sky-high inflation, owing to depreciation within the worth of the Pakistani rupee and the brand new tax insurance policies carried out by the federal government has led to inflation charges crossing the 9 % mark in September.The Wholesale Price Index (WPI), which captures costs within the wholesale market, additionally rose sharply by 19.6 % in September in comparison with 4.3 % in the identical month a yr in the past. According to the Pakistan Institute of Development Economics, about 39 % of Pakistanis dwell in poverty and the rising inflation may have a catastrophic impact on them.Iran’s Rial has additionally declined by one other 2.8 %, bringing its 6-month loss to 31.5 %. After former President Donald Trump’s administration left the Joint Comprehensive Plan of Action (JCPOA), Iran’s financial system has suffered. Iran is now cozying with China with a view to enhance the financial situations however that has been of little assist to this point. Most of the international locations around the globe, together with India, have stopped buying oil from the Islamic Republic of Iran, so the current surge in oil costs is of little assist to the nation.The Islamization insurance policies of leaders in international locations like Iran, Turkey, and Pakistan are pushing their financial system into the medieval world. Erdogan‘s dreams are bringing back the Ottoman Empire’s glory of the medieval world, that too by way of medieval practices.His promotion of Ottoman-inspired Turkish TV sequence and aggressive export of those cleaning soap operas in international locations like Pakistan exhibits that he desires to ascertain Turkey as the middle of the Islamic world and designate himself as caliph. But, the fashionable world runs on sound financial system and know-how, and Turkey as effectively Pakistan is shedding on each fronts as they contain themselves in battle with the Western world and quickly modernizing international locations like India.Read extra: Delhi Dialogue impact: Taliban begins buying and selling by way of Chabahar dumping China-backed Pakistani portsIran, too, is descending into chaos. Although, Iran’s issues are the results of American sanctions than its personal doing however general, the post-Covid world doesn’t appear sort to the Islamic international locations.