Karachi October 5 2022: Pakistan Rupee continue to appreciate for the ninth consecutive session in interbank against dollar as lower house on Tuesday directed the State Bank of Pakistan to take appropriate action against all the banks and exchange companies involved in manipulating volatility of the exchange rate.
The United Nations and Pakistan will present a revised appeal for the ‘Floods Response Plan’ in Geneva on Tuesday (today), seeking $816 million to control a surge in water-borne diseases following the country’s worst floods in decades, the UN resident coordinator for Pakistan announced yesterday.
“Pakistan Rupee soon will be below level of 200 against the dollar” says Pakistan’s newly appointed Finance Minister Ishaq dar.
He added,” We have to kick out speculators from the market. In every case, value of Rupee is less than 200 but i could not disclose its right value now. We will bring it through fundamental changes rather than artificial measures.”
Pakistan Rupee appreciate PKR 1.64 or 0.72 percent in interbank to trade at 224.00 at PST 12:10 against yesterday closing of 225.64. In the last eight consecutive session rupee gains PKR 14.07 or 6.2% from recent low of 239.71.
However, In Open Market Rupee gain 1 rupee to trade at 227.5 at PST 12:10 against yesterday closing of 228.5.
The National Assembly Standing Committee on Finance and Revenue on Tuesday directed the State Bank of Pakistan to take appropriate action against all the banks and exchange companies involved in manipulating volatility of the exchange rate.
The State Bank has also been asked to take appropriate action against elements involved in exchange rate manipulation so that no one dares to play with the economy of the country.
The committee met under the chairmanship of Member of National Assembly (MNA) Qaiser Ahmad Sheikh, here in the Parliament House.
The committee was of the view that during recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by the Exchange Companies, few banks earned exorbitant profits.
The committee was apprised that few banks and forex exchange companies were suspected of manipulating volatility in exchange rate.
The SBP taking cognizance initiated strict monitoring of the foreign exchange operations of banks and exchange companies and has initiated inquiry proceedings into the violations made against SBP regulations.
The probability of a Pakistan currency-crisis episode involving a very large depreciation of the nominal exchange rate and extensive depletion of foreign-exchange reserves could climb to about 59% by June 2023 from 29% in August, Bloomberg economist Ankur Shukla wrote in a note. Shukla used a currency risk model initially applied to Pakistan but will be expanded to other emerging markets.
“Crop damage and a host of other problems stemming from the disaster all but erase any progress toward stability that came with the IMF’s aid,” Shukla wrote in a note on Tuesday. “Much of the progress toward stabilizing external balances has been undone by the floods.”
The dollar index , down about 4% since hitting a record high of 114.78 last week, steadied at 110.30. The yen held at 144.06 per dollar and the Australian dollar fell 0.2% to $0.6488, Reuters Reported.
Demand for the safe haven dollar had fallen in recent days as the mood in global markets improved on speculation Britain's new finance minister Kwasi Kwarteng, having rowed back on a proposed tax break for high earners, could make further adjustments to a mini-budget that had sent bond and currency markets into a tailspin last week.