6/11/2023 0 Comments Pakistani rupee to us dollarThe drop in the official rate was the biggest since 1999 in both absolute and percentage terms, according to JS Global, a Pakistani brokerage house. Wednesday's move by foreign currency dealers, whose open market rates are different from the rate notified by the central bank, had a cascade effect on official exchange rates on Thursday. The foreign exchange companies said on Wednesday that they had removed the cap for the sake of the country, because it was causing "artificial" distortions for the economy. The lender announced on Thursday that it was sending a mission to the country at the end of January to discuss resuming the programme.Īside from wanting the government to take fiscal measures, the IMF is pushing for it to move to a market-determined exchange rate regime, which the IMF highlighted in its statement on Thursday. It was topped up with another $1 billion last year to help the country following devastating floods, but the IMF then suspended disbursements in November due to Pakistan's failure to make more progress on fiscal consolidation. Pakistan secured a $6 billion IMF bailout in 2019. The currency's official value closed at 255.4 rupees against the dollar versus 230.9 on Wednesday, the central bank said.įacing an acute balance of payments crisis, Pakistan is desperate to secure external financing, with less than three weeks' worth of import cover in its foreign exchange reserves, which fell $923 million to $3.68 billion in the latest data. The drop comes a day after foreign exchange companies removed a cap on the exchange rate, a key demand of the IMF as part of a programme of economic reforms it has agreed on with the cash-strapped South Asian nation. In the open market, the PKR gained 2.50 rupees for both buying and selling against USD, closing at 284 and 287, respectively.Īgainst Euro, the PKR gained 1 rupee for both buying and selling, closing at 313 and 316 respectively.Īgainst UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 77.50 and 78.20, respectively.Īgainst Saudi Riyal, the PKR gained 30 paisa for buying and selling, closing at 75.50 and 76.20, respectively.KARACHI, Pakistan, Jan 26 (Reuters) - The Pakistani rupee fell 9.6% against the dollar on Thursday, central bank data showed - the biggest one-day drop in over two decades - in a slump that may persuade the International Monetary Fund to resume lending to the country. Inter-bank market rates for dollar on Friday Oil prices, a key indicator of currency parity, rose on Friday but were poised for a third straight week of losses after markets registered dramatic drops on fears of a weakening US economy and slowing Chinese demand. That left the greenback broadly lower on Friday, with the dollar index slipping 0.11% to 101.23. Shares of PacWest Bancorp plunged on Thursday, dragging other regional lenders down after the Los Angeles-based bank’s plan to explore strategic options heightened investor fears. Globally, the US dollar fell as traders priced in more aggressive rate cuts from the Federal Reserve.Ī deepening crisis across US regional banks have kept investors on tenterhooks, with pressure growing on US regulators to take more steps to shore up the sector. The development comes as Pakistan remains engaged with the Washington-based lender to resume its bailout programme that has been stalled at the ninth review since November last year. “In addition, the IMF supports the authorities in the implementation of policies in the period ahead, including in the technical work to prepare the FY24 budget, which is to be passed by the National Assembly before end-June,” Nathan Porter, the IMF Mission Chief for Pakistan, was quoted as saying in a statement to Business Recorder on Friday. In a key development, the International Monetary Fund (IMF) reiterated that it is working with Pakistani authorities to bring the pending ninth review to conclusion “once the necessary financing is in place and the agreement is finalised”. The rupee had registered a marginal gain against the US dollar on Thursday as well, settling at 283.82 in the inter-bank market.
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