Karachi September 22 2022: Pakistan Rupee drops 6 paisa against Dollar and depreciated for fifteen consecutive trading session in interbank to close at 239.71.
The decline in Rupee restricted on inflows from friendly countries and international agencies for flood victims and regulatory measures taken by Government Agencies despite Dollar making new two decade high.
“World Bank repurposing US$ 850 million immediately to help Pakistan with its flood relief efforts”, says President of the World Bank Group in a meeting with Pakistan Premier.
In another development, the Asian Development Bank (ADB) has approved a $100 million results-based loan to help strengthen the quality of secondary health care in Khyber Pakhtunkhwa province in Pakistan.
Pakistan Rupee depreciates 6 paisa or 0.03 percent in interbank to close at 239.71 compared to yesterday closing of 239.65 against the dollar. Pakistan Rupee depreciates 8.86% or 21.10 in last fifteen sessions. Pakistan currency hit low of 239.94 on 29th July 2022 on uncertainty of IMF program.
The Rupee is 23 paisa or 0.11 percent away from hitting record low of 239.94. According to Bloomberg, the currency is among the worst performers globally in September, having fallen more than 8%.
In open market dollar gain 70 paisa to trade at 244.1 at PST 14:00.
Minister for Planning, Development and Special Initiatives Ahsan Iqbal is optimistic that the foreign aid being received for the flood victims in the country could help stabilize the Pakistani Rupee.
Pakistan’s Finance Minister Miftah Ismail has stated while speaking to business community that there is still much pressure on the dollar which will not allow us for opening of LCs for imports.
Dr Aisha Ghaus Pasha said we are expecting potential inflows from different financial institution and friendly countries which includes $1.5million from Asian Development bank (ADB) and $500 million from Asian Infrastructure Investment Bank (AIIB).
She said that Saudi Arabia had already rolled over $3million loan and negotiation was in process with Qatar and United Arab Emirates (UAE).
To support Rupee, Government of Pakistan increased profit rates for overseas Pakistani’s on PKR denominated Naya Pakistan Certificates and also revised downward the minimum denomination of NPCs in a bid to increase reserves. Rate on PKR denominated bonds is increased by 5.5 percent for three month, 5.25 percent for six months, 5.00 percent for 12 months, 3.25 percent for three years and 2.5 percent for five year securities.
To control exchange rate in Open Market SBP has decided that effective September 7, 2022, Exchange Companies shall seek prior approval from SBP for such export of USD currency notes and the Intended date should not be beyond two days from the date of request submission.
The dollar hit multi-year highs earlier on Thursday, a day after the Federal Reserve surprised markets with hawkish interest-rate projections. The dollar index – which measures the U.S. unit against a basket of six counterparts – earlier rose as high as 111.81 for the first time since mid-2002.