On IMF dilly-dallying, Pakistani rupee hammered by US dollar in interbank

By: News Desk
Published: 11:24 AM, 17 Apr, 2023
On IMF dilly-dallying, Pakistani rupee hammered by US dollar in interbank
Caption: Representational image.
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On the IMF dilly-dallying regarding the release of its next tranche, the money market displayed negative sentiments leaving Pakistani rupee lose its value by 31 paisas against the US dollar in the interbank trading on Monday, reported 24NewsHD TV channel.

As per the data provided by the money dealers, the upward trajectory, maintained by the Pakistani rupee during the last four trading sessions, busted during the trade on Monday as the US dollar surged by 31 notches and ended the day at Rs284.71 in the interbank.

On Friday, the last trading day of previous week, the Pakistani rupee appreciated by 50 paisas against the US dollar on the IMF optimism. 

Though Pakistan has completed all prior actions demanded by the global lender for the revival of its loan programme, the IMF continues to exert more pressure despite receiving confirmation from two of the country's key allies, Saudi Arabia and the United Arab Emirates (UAE), that the $6 billion financing condition has been met.

IMF’s Mission Chief to Pakistan Nathan Porter on Saturday expressed support for Pakistan's efforts and welcomed financial assistance from its friendly countries.

"We welcome the recent announcement of important financial support to Pakistan from key bilateral partners," he said in a statement. 

During the meetings between the Pakistani delegation and IMF staff and management, there was agreement on the need to maintain strong policies and secure sufficient financing to support the authorities’ implementation efforts, he added.

According to IMF official, the IMF is providing support for these efforts and is eager to receive the necessary assurances promptly. This would enable the successful completion of the 9th review of an Extended Fund Facility (EFF) and indicates that Pakistan anticipates receiving additional funding from its allies.

A Pakistani delegation is already in Washington to hold talks with the IMF officials.

SBP Governor Jameel Ahmad, who is also in Washington, met key international investors and fund managers during an event. He told them that Pakistan’s economy is witnessing high inflation and external balance of payments pressures, which are largely driven by adverse global shocks and domestic developments. At the same time, global financial conditions have tightened, which has made it harder for EMs like Pakistan to access international financial markets. As a result, country’s foreign exchange reserves and exchange rate came under stress. 

Pakistan is in dire need of securing the IMF tranche which will also unlock assistance from other countries and organizations. 

Open market rates 

Following are the exchange rates of different foreign currencies in the open market by 8am today. 

The buying rate of one US Dollar in the open market was Rs284.00, while the selling rate was Rs287.00.

The buying rate of one Canadian Dollar (CAD) was Rs210 while the selling rate was Rs215.

The buying rate of one UAE Dirham (AED) was Rs76.80, while the selling rate was Rs78.

The buying rate of one UK Pound Sterling (GBP) was Rs350, while the selling rate was Rs355.

The buying rate of one Euro (EUR) was Rs310, while the selling rate was Rs315.

Reporter Ashraf Khan

Categories : Business