US dollar hammers Pakistani rupee heavily in interbank business

After suffering a decline for the last several days, the Pakistani rupee appeared to have turned the tables on the US dollar as the trading began in the interbank market, but soon the local currency ran out of steam and the greenback hit back with force on Friday, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the US dollar smashed past the Rs286 mark against the rupee and ended the day at Rs286.81, up by Rs1.66 or 0.58 percent

Interbank closing #ExchangeRate for todayhttps://t.co/PMrUjl22FS#SBPExchangeRate pic.twitter.com/Fj8mJS9mH6

— SBP (@StateBank_Pak) July 21, 2023

Yesterday, the local unit depreciated 0.47 percent against the greenback and ended the day at Rs285.15, down by Rs1.35 paisas.

https://twitter.com/StateBank_Pak/status/1681989575630286849

Though the country is grappling with a serious economic mess, the foreign exchanges reserves held by the State Bank of Pakistan, however, rose by $4.203 billion to reach $8.727 billion during the week ended on July 14, 2023, according to the data released by the central bank on Thursday.

With the fresh injection, the country’s total foreign exchange reserves reached $14.065 billion. The net holdings of the commercial banks were $5.338 billion.

The SBP has got the FX reserves boost as it received a $1.2bn immediate disbursement from the International Monetary Fund (IMF), a $2bn deposit from Saudi Arabia, and an additional $1bn deposit from United Arab Emirates (UAE).

https://twitter.com/StateBank_Pak/status/1682067092902907905

Despite this temporary relief, economic experts warn that the Pakistani economy is not out of the wood. The IMF has also painted a bleak economic outlook for Pakistan in its latest report, warning that the country is facing significant economic challenges despite foreign funding.

 

Reporter Ashraf Khan