Forex reserves crunch keeps pulling Pakistani rupee down
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The Pakistani rupee kept losing its value against the US dollar in the interbank, reported 24NewsHD TV channel.
According to the money dealers, during trading activity on Monday after a break of two days, the American currency seemed to glide confidently pushing down Pakistani rupee. During morning activity, the dollar was up by 11 paisas and traded for Rs221.75. However, as the trading drew towards close, the greenback was only five paisas up against the rupee at Rs221.69.
Interbank closing #ExchangeRate for todayhttps://t.co/QHXuOvBJt0 pic.twitter.com/QqrB6G5Uai
— SBP (@StateBank_Pak) November 14, 2022
On Friday, the USD was closed at Rs221.64 and the PKR was depreciated by 0.10%.
Interbank closing #ExchangeRate for todayhttps://t.co/iN5Qb0mCM3 pic.twitter.com/TwPsimLhDV
— SBP (@StateBank_Pak) November 11, 2022
The PKR is slumping against the dollar due to massive decline in country’s foreign exchange reserves.
Pakistan foreign exchange reserves slipped sharply by $956 million by week ended on November 04, 2022 owing to external debt payments, State Bank of Pakistan (SBP) said on Thursday.
The major debt retirement includes repayment of government’s commercial loans. Refinancing of these loans is in process, which will improve foreign exchange reserves in coming weeks, the central bank said.
The foreign exchange reserves of the country have been recorded at $13.721 billion by week ended November 04, 2022 as compared to $14.679 billion a week ago i.e. October 28, 2022.
Total liquid foreign #reserves held by the country stood at US$ 13.72 billion as of November 04, 2022. For details: https://t.co/WpSgomnKT3 pic.twitter.com/jNbdDpUjNR
— SBP (@StateBank_Pak) November 11, 2022
Besides this, the remittances sent by overseas Pakistanis in October were also shrunk by 9% and the remittance inflow was $2.2 billion.
In Oct 2022, workers’ remittances recorded an inflow of US$2.2 billion indicating a 9 percent decrease over last month. For details see https://t.co/rPOvn9UuaNhttps://t.co/7XBd4uw3tu pic.twitter.com/VgWszEQmJA
— SBP (@StateBank_Pak) November 11, 2022