Pakistani Rupee makes a historic recovery Dollar closes at Rs.228.80/- .
On Wednesday, the Pakistani Rupee
had an unprecedented one-day gain of Rs.9.58/- versus the US dollar, closing at
Rs.228.80/- in the interbank foreign currency market.
In the interbank foreign exchange
market, the exchange rate closed the day at Rs.228.80/- to the dollar, up Rs.9.58/- from the previous day's closing of Rs.238.38/-.
After the US was contacted by the
Chief of the Army Staff (COAS) to expedite the delivery of the IMF tranche, the
rupee recovered for a fourth day in a row.
On July 28, 2022, the rupee hit
an all-time low against the dollar of Rs 239,94.
According to analysts, there will
be multilateral inflows from the IMF of $1.2 billion, followed by bilateral inflows
from friendly nations, and coupled with the impact of the global and local
recession on oil and food/commodity prices globally, there will be
significantly fewer imports (exports will also be affected), which will reduce
demand for dollar outflows. This should, at least temporarily, boost the PKR's
exchange rate with the US dollar.
According to currency analysts,
the decrease in import expenses during the month of July 2022 lessened the
demand for foreign currency. Furthermore, the IMF is scheduled to release the
tranche before the end of this month.
The rupee has been falling
precipitously against the dollar for several months now as a result of
political unrest and deteriorating economic data. According to the analysts,
the ongoing reduction in the value of the rupee may possibly be related to a
decrease in foreign exchange reserves. The country'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 country had $15.61 billion in
foreign exchange reserves.
On August 27, 2021, the country's
foreign exchange reserves reached an all-time high of $27.228 billion. The
foreign exchange reserves have declined by $11.986 billion since that time. The
State Bank's official reserves also declined by $388 billion from $9.717
billion a week earlier to $9.329 billion for 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 declined by $10.817 billion
since that time.
