Diamonds are highly precious and water is cheap. Why? diamonds have no real purpose but water is essential for life. Still diamonds are so expensive and water is so cheap. This is because water is available in abundance and with little effort, more water can be arrranged but diamonds are scars and more supply needs more effort. So it is the affect of demand and supply that determines the price of everything.
If we ignore all other factors, including demand, and determine the price on the basis of supply, price will increase as quantitly supplied is reduced and price will decrease with an increase in supply. Supply and price have inverse relationship. Anything vaialbe in abundance and easily has very little monetary value while on the other hand anything scarce has huge value.
Same rule applies to the currency. If supply of PKR is increased, its value will decrease and if supply is decreased, its value will increase. Provided that other factors remain constant. Here we have taken actual data of Pakistan's PKR value in term of USD in comparison with Broad Money.
| Year | PKR_Per_USD | Broad_Money |
| 1960 | 4.76190 | 7252000000.00000 |
| 1961 | 4.76190 | 6964300000.00000 |
| 1962 | 4.76190 | 7596400000.00000 |
| 1963 | 4.76190 | 8875500000.00000 |
| 1964 | 4.76190 | 10779400000.00000 |
| 1965 | 4.76190 | 12058000000.00000 |
| 1966 | 4.76190 | 14605000000.00000 |
| 1967 | 4.76190 | 15081400000.00000 |
| 1968 | 4.76190 | 16959700000.00000 |
| 1969 | 4.76190 | 18580100000.00000 |
| 1970 | 4.76190 | 20752100000.00000 |
| 1971 | 4.76190 | 23609900000.00000 |
| 1972 | 8.68138 | 27734200000.00000 |
| 1973 | 9.99424 | 31562200000.00000 |
| 1974 | 9.90000 | 31182300000.00000 |
| 1975 | 9.90000 | 37797600000.00000 |
| 1976 | 9.90000 | 49967300000.00000 |
| 1977 | 9.90000 | 58935200000.00000 |
| 1978 | 9.90000 | 70629400000.00000 |
| 1979 | 9.90000 | 84117500000.00000 |
| 1980 | 9.90000 | 97321600000.00000 |
| 1981 | 9.90000 | 108537600000.00000 |
| 1982 | 11.84746 | 132232500000.00000 |
| 1983 | 13.11697 | 159881600000.00000 |
| 1984 | 14.04633 | 167312300000.00000 |
| 1985 | 15.92839 | 191985100000.00000 |
| 1986 | 16.64750 | 222842300000.00000 |
| 1987 | 17.39880 | 259396300000.00000 |
| 1988 | 18.00329 | 279377500000.00000 |
| 1989 | 20.54149 | 300054000000.00000 |
| 1990 | 21.70737 | 334991300000.00000 |
| 1991 | 23.80076 | 398453100000.00000 |
| 1992 | 25.08279 | 515202100000.00000 |
| 1993 | 28.10718 | 608626000000.00000 |
| 1994 | 30.56659 | 714348000000.00000 |
| 1995 | 31.64268 | 812998000000.00000 |
| 1996 | 36.07868 | 976155000000.00000 |
| 1997 | 41.11152 | 1170525000000.00000 |
| 1998 | 45.04666 | 1262521000000.00000 |
| 1999 | 49.50069 | 1316989000000.00000 |
| 2000 | 53.64818 | 1476676000000.00000 |
| 2001 | 61.92716 | 1650126000000.00000 |
| 2002 | 59.72378 | 1927995000000.00000 |
| 2003 | 57.75199 | 2266163400000.00000 |
| 2004 | 58.25786 | 2731053000000.00000 |
| 2005 | 59.51447 | 3182515000000.00000 |
| 2006 | 60.27133 | 4631578000000.00000 |
| 2007 | 60.73851 | 5439249000000.00000 |
| 2008 | 70.40803 | 5794143796000.00000 |
| 2009 | 81.71289 | 6814495817363.99000 |
| 2010 | 85.19381 | 7807082726900.00000 |
| 2011 | 86.34338 | 8790979839286.22000 |
| 2012 | 93.39519 | 10320172533548.00000 |
| 2013 | 101.62889 | 11694370341859.60000 |
| 2014 | 101.10008 | 13044335106623.40000 |
| 2015 | 102.76927 | 14633262962941.40000 |
| 2016 | 104.76911 | 16625735215555.40000 |
| 2017 | 105.45516 | 18276890431006.40000 |
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