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 despite global weakening of dollar on US higher than expected inflation.
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 10 paisa or 0.05 percent in interbank to trade at 218.48 at PST 12:30 against yesterday closing of 218.38.
Moreover, In Open Market Rupee depreciate 1.5 to trade at 224 at PST 12:30, according to Forex Association of Pakistan.
The dollar slipped on Friday as risk appetite returned to global stock markets and investors appeared to shift their focus away from U.S. interest rate considerations, even as red-hot inflation data suggested more policy tightening was likely. The dollar index fell 0.275%, extending the overnight session's 0.5% decline 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.