Karachi November 7 2022: Pakistan Rupee gain against dollar for the second consecutive day as China and Saudi Arabia assured funding of USD 13 billion to Pakistan despite political unrest and increase in limits of opening of LCs.
Pakistan Rupee appreciate 26 paisa or 0.12 percent in interbank to trade at 221.66 at PST 11: 30 against yesterday closing of 221.92.
Moreover, In Open Market Rupee is trading at 227.9 against dollar at PST 11:30, according to Forex Association of Pakistan.
China and Saudi Arabia have assured $13 billion in funding to Pakistan, Dawn newspaper reported.
Following the country’s Prime Minister Shehbaz Sharif’s recent visit to Beijing, China has agreed to roll over $4 billion worth of sovereign loans to the South Asian nation, refinance another $3.3 billion in commercial bank borrowings and increase currency swap facility by as much as $1.45 billion, the newspaper reported citing Pakistan’s Finance Minister Ishaq Dar.
Saudi Arabia has also “given a positive response” to Pakistan’s request for an additional $3 billion in funding and doubling of its deferred oil facility to $1.2 billion, Dar told journalists, according to the report.
Government has start clearing all Letter of Credits which are pending amounting to USD 100,000 from first of November against current limit of 50,000 dollars says finance minister.
Finance Minister Ishaq Dar has warned of strict action against the hoarders and smugglers of US dollar as well as manipulators for keeping the rupee undervalued, and reiterated that the fair value of the rupee “is 194 to a dollar on REER Basis”.
The REER index was recorded at 90.93 in September 2022 as compared to 94.37 in August 2022 improved by 2.04 percent, according to data published by State Bank of Pakistan. While during the month of September 2022 Pak rupee lost 3.5 percent to close the month at 228 against dollar, as per official data of SBP.
The dollar firmed on Monday as sentiment soured after China said it is sticking with its strict COVID restrictions, quashing hopes of an imminent reopening in the world's second-largest economy which had earlier fired a broad rally in riskier assets. Against a basket of currencies, the U.S. dollar index last stood at 111.02. It had lost almost 2% at the end of last week.