import demand functions with reference to Pakistan’s trading partners. We use GARCH-based exchange rate volatilities and the … with that of the short run. The results show that, when Pakistan employed the US dollar as the vehicle currency with its … remained unaffected by volatility distortions when Pakistan traded with its developing partners using bilateral exchange rates …

-step-ahead forecastabilities by employing four major forecasting evaluation criteria, and compares two different currencies— the Pakistan rupee and … international vehicle currency is favorable in Pakistan’s context. However, the Kuwaiti dinar, Canadian dollar, US dollar, Singapore …