Karachi August 15 2022: Pakistan Rupee appreciate for the tenth consecutive day to trade below 213 against dollar in the interbank as Saudi Arabia plans to renew its $3 billion deposit in assistance to Pakistan amid lower external debt repayments in the month of August.
Higher export-related receipts and optimism that country is inching toward securing the International Monetary Fund bailout amid crackdown on foreign exchange dealers further fueling the appreciation of Rupee in the interbank.
The rupee appreciates by PKR 2.54 in the interbank to trade at 212.95 against dollar. On Friday, Dollar closes at 215.49 in the interbank trading after appreciating 1.57 percent in a day.
The Saudi Finance Ministry plans to renew its $3 billion deposit with State Bank of Pakistan as soon as this week, the sources said, asking not to be identified discussing private deliberations, Bloomberg reported on Saturday.
The kingdom also plans to provide $100 million a month for 10 months in petroleum products that will be granted as additional support, the sources added.
SBP expect debt repayments to moderate during the next three weeks of this month.
In fact, around three-fourth of debt servicing for the month of August was concentrated during the first week.
The worst may be over for emerging Asian currencies as slower-than-expected US inflation eases pressure on the Federal Reserve to aggressively raise interest rates, according to DBS Group Holdings Ltd. and Malayan Banking Bhd.
Pakistan has met the last prior action for the combined 7th and 8th review following the increase in petroleum levy on 31st July 2022, says IMF country representative to Pakistan Esther Perez Ruiz.
The Board meeting is tentatively planned for third week of August as per Governor State Bank of Pakistan.