Karachi September 15 2022: Pakistan Rupee depreciates in interbank for the tenth consecutive day to slip from one month low and closes at 235.88 against dollar as dollar Index holds near peak.
The situation is already peculiar for Pakistan Rupee as Dollar shortages persists in the domestic market due to import of goods for flood relief and vegetables to meet shortages caused by devastating floods amid FBR decision to declare dollars on inbound flights.
Pakistan Rupee depreciates 1.56 or 0.67 percent in interbank to close at 235.88 against the dollar. Pakistan Rupee depreciates 7.45% or 17.58 since start of this month.Pakistan currency hit low of 239.94 on 29th July 2022 on uncertainty of IMF program.
In open market dollar is trading at 241 at PST 14:36, according to Forex Association of Pakistan.
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.
However, SBP clarified that there is no restriction on the import of raw material for any industry including export-oriented industry. It is further clarified that SBP has advised banks to seek prior permission before initiating transactions for import of Motor Cars (CKD), Mobile Phones (CKD) and machinery.
On August 16 2022, CAA order required all incoming international flights to ensure that all passengers disclose their foreign currency possessions through a pro forma and that airlines submit all these declarations to the CAA. State Bank of Pakistan Deputy Governor Dr Inayat Hussain said before the senate that this was one of the reasons for recent pressure on the rupee.
Recent floods have brought unprecedented crop damage. As a result, the prices of onion and tomatoes have sky-rocketed in the local markets. In order to alleviate the sufferings of the people due to abnormal price hike, the Prime Minister of Pakistan ordered urgent relief measures to ensure an uninterrupted supply of onion and tomatoe in the local markets. Elimination of all taxes and duties in procuring the two vegetables by import will help reduce their prices.
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 held near recent peaks on Thursday, supported by expectations the U.S. Federal Reserve will continue to tighten policy aggressively as it tries to curb inflation, while the yen faltered after jumping sharply the day before. The dollar index firm at 109.84, holding onto its 1.5% gain from Tuesday, when U.S. inflation data came in hotter than expected.