Pakistani rupee hammers US dollar on IMF hope
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On the hope that the country will be able to secure the IMF tranche soon, the Pakistani rupee maintained its upward trajectory as the local unit gained 51 paisas against the US dollar on Friday, reported 24NewsHD TV channel.
According to the State Bank of Pakistan, the US dollar slid by 51 paisas and was exchanged at Rs284.40 towards the close of the trade.
Interbank closing #ExchangeRate for todayhttps://t.co/3YA2ffeJWf pic.twitter.com/DN8Jx3hvLy
— SBP (@StateBank_Pak) April 14, 2023
Yesterday, the Pakistani rupee dealt a heavy blow to the US dollar in the interbank and was appreciated by Rs1.71.
Interbank closing #ExchangeRate for todayhttps://t.co/fgYYOewOy2 pic.twitter.com/eo15SRAYbh
— SBP (@StateBank_Pak) April 13, 2023
For the last three trading sessions, the rupee is surging against the US dollar. The appreciation might be attributed to the good vibes coming from the International Monetary Fund.
Delivering a speech at the annual meeting of the IMF and the World Bank in Washington on Thursday, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva has expressed the hope that Pakistan will successfully complete the current loan programme and not face the same situation as Sri Lanka and Ghana.
Georgieva said that they are working hard together with the Pakistani authorities, and the country should create such a political framework that avoids economic risks. “We want Pakistan to move towards sustainable economic development. We want assurance of financial support.”
Also Read: UAE confirms to IMF its $1 billion financial support to Pakistan
Since early February, Pakistan has been negotiating with the IMF to revive the bailout programme to secure $1.1 billion tranche.
The IMF requires friendly nations to fulfill their pledges to fund Pakistan before finalizing the $6.5 billion bailout programme which led to a delay in talks between Pakistan and the IMF to resume the programme.
According to some reports, the United Arab Emirates (UAE) is likely to provide a written guarantee for $1 billion in financing this week as the matters have been finalized for the financing.
During IMF/World Bank Spring meetings via Zoom with IMF Deputy Managing Director Antoinette Moniso Sayeh, Federal Minister for Finance Ishaq Dar said that all prior actions for the 9th Review under the Extended Fund Facility (EFF) have already been completed and the government is fully committed to fulfilling its obligations as agreed with the IMF.
Also Read: Pakistan has yet to reach bankruptcy and better not, says IMF chief
Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pasha attended the meeting virtually from Islamabad. Whereas the Ambassador of Pakistan to the USA Mr. Masood Ahmad Khan, Governor SBP Mr. Jamil Ahmad, Secretary of Finance, and Secretary EAD attended in person in Washington DC.
On Wednesday, Jihad Azour, Director of IMF, Middle East and Central Asia Department (MCD) said that the Staff Level Agreement (SLA) will be signed soon followed by the IMF Board’s approval.
Cash-strapped Pakistan is in dire need of funding to avoid default risk. Country’s foreign exchange reserves are drying up swiftly.
SBP forex reserves fall to $4.03 billion
The State Bank of Pakistan (SBP) announced on Thursday that the country’s foreign exchange reserves fell by $195 million to $9.565 billion by the week ending on April 07, 2023, as compared to $9.76 billion a week earlier i.e., March 31, 2023.
The reserves fell due to external debt repayments.
The reserves held by the State Bank now stand at $4.03 billion, which is not enough to cover even a month’s imports.
Total liquid foreign #reserves held by the country stood at US$ 9.56 billion as of April 07, 2023.
— SBP (@StateBank_Pak) April 13, 2023
For details https://t.co/WpSgomnKT3 pic.twitter.com/Tihc59704Q
This is the third consecutive week which has recorded a dip in the foreign reserves.
Open market currency rates
Following are the exchange rates of different currencies in the open market by 8am today.
The buying rate of the US Dollar in the open market was Rs287.00, while the selling rate was Rs290.00.
The buying rate of Saudi Riyal was Rs75.70, while the selling rate was Rs76.70.
The buying rate of Euro (EUR) was Rs312.50, while the selling rate was Rs315.60.
The buying rate of UK Pound Sterling (GBP) was Rs354.50, while the selling rate was Rs358.00.
The buying rate of UAE Dirham was Rs77.60, while the selling rate was Rs78.60.
Reporter Ashraf Khan