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| Money & Banking |
US Dollar reached a new high of Rs.236.02 at the closing of the interbank
At the close of the interbank foreign exchange market on Wednesday, the US dollar reached a new high against the Pakistani Rupee (PKR) of Rs.236.02.
The rupee's value decreased by
Rs.3.09 to close the day at Rs.236.02 to the dollar, down from the interbank
foreign exchange market's previous day's closing of Rs.232.93.
In recent days, the rupee has
been steadily losing value versus the dollar as a result of political unrest
and subpar economic statistics.
Currency merchants claimed that
the rupee's value was continuously falling due to external payment pressure.
According to the dealers, the
ongoing slide in the value of the rupee may possibly be related to a decrease
in foreign exchange reserves.
The nation's foreign exchange
holdings have further decreased.
By the week ending July 15, 2022,
Pakistan's foreign exchange reserves have decreased by $368 million to $15.242
billion. Prior to one week, on July 7, 2022, the government had $15.61 billion
in foreign exchange reserves.
On August 27, 2021, the
government's foreign exchange reserves reached an all-time high of $27.228
billion. The foreign exchange reserves have decreased by $11.986 billion since
that time.
The State Bank's official
reserves also decreased by $388 billion from $9.717 billion a week earlier to
$9.329 billion by the week ending July 15, 2022.
By the week ending August 27,
2021, the central bank's foreign exchange reserves had reached a new high of
$20.146 billion. The SBP's official reserves have decreased by $10.817 billion
since that time.
On July 7, 2022, the SBP
announced raising the policy rate by 125 basis points to 15%. To reduce demand
and preserve the value of the rupee, the interest rate was raised. The SBP
tried to support the rupee value, but it was unsuccessful.
