The Pakistani rupee which edged up in the interbank trading on Wednesday morning, could not hold its position for long as it later lost value against the US dollar, reported 24NewsHD TV channel.
As per the State Bank of Pakistan, the local currency was depreciated by 32 paisas against the greenback and ended the day at Rs286.88.
However on Tuesday, the local unit lost 37 paisas against the US dollar which ended the day at Rs286.56.
https://twitter.com/StateBank_Pak/status/1666044146497486849
The Pakistan currency has been shedding its value for the past several months owing to dwindling forex reserves.
In its recent report on Pakistan, the World Bank said: “With dwindling foreign exchange reserves and stagnant remittances, the government has increased exchange rate flexibility, allowing the Pakistani rupee to depreciate by 20pc since the start of the yea. Consequently, headline consumer price inflation has risen sharply, reaching 38pc in the year to May, its highest level since records began in the late 1970s.”
The WB has also advised Pakistan’s central bank to raise its policy rate from the current 21% to rein in galloping inflation.
The World Bank has estimated that Pakistan’s economy will grow by 2% instead of 3.5% as was projected by the National Economic Council on Tuesday.
Reporter Ashraf Khan