Karachi October 14 2022: Pakistan Rupee falls for the third consecutive day in interbank trading against as State Bank of Pakistan reserves fall to low of 39 months amid government start opening LCs worth 50,000 dollars and global strengthening of dollar on US higher than expected inflation.
However, Pakistan Rupee end the week on gains, as Rupee appreciated PKR 1.4 or 0.66 percent against Dollar in the interbank compared with last Friday closing of 219.92
SBP foreign exchange reserves for the week ending October 7 2022, were decreased by USD 303 million to USD 7,596 million due to external debt repayments, which included repayment of a commercial loan and interest payment on Eurobonds, as per data released by the Central Bank.
Pakistan reserves witnessed second biggest drop in the year after Argentina during the period according to Bloomberg which track 53 countries foreign exchange reserves number.
“Pending payments of letters of credit (LCs) worth $50,000 will be cleared this week” said Pakistan’s Finance Minister Ishaq dar on Sunday.
“A total of 7,952 cases were pending and after these decisions, nearly 4,400 requests of opening LCs will be subtracted” He added.
“Dollar inflows are increasing in October through the channel of remittances, Roshan Digital Account and exports” says SBP Governor.
Pakistan Rupee depreciate 5 paisa or 0.02 percent in interbank to close at 218.43 against yesterday closing of 218.38.
Moreover, In Open Market Rupee is trading at 222.5 at PST 16:30, according to Forex Association of Pakistan.
The dollar edged higher on Friday after dropping the previous day despite U.S. inflation accelerating, helping it hit a 32-year peak against Japan’s yen. The dollar index was last up 0.35% to 112.97, having fallen 0.6% on Thursday as investors seemingly brushed off data that showed U.S. consumer prices increased more than expected in September.
Pakistan Rupee gains PKR 21.92 or 10.1% in consecutive thirteen sessions before start of recent fall due to finance minister assurance that the government’s is fully committed to fully honor all the commitments made with International Monetary Funds (IMF) and other creditors, besides addressing the issues faced by the local business community and increased financial assistance from financial institutions.
