US dollar flexes its muscles again, pounds Pakistani rupee

By: News Desk
Published: 10:24 AM, 24 Jun, 2022
US dollar flexes its muscles again, pounds Pakistani rupee
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Though the promised IMF and Chinese rollover is yet to land, Pakistani currency is in a fluid mode as on Friday it lost 25 paisas in its value against US dollar after reaping a healthy gain of Rs4.70 yesterday on the back of good economic vibes, reported 24NewsHD TV channel.

In the trading activity today, the dollar seemed to regain its strength and appreciated by Rs1.27 and was once traded at Rs208.50. But in the end, the greenback appreciated only was 25 paisas, concluding the day at Rs207.48.

Yesterday, the Pakistani rupee skyrocketed against the dollar, outclassing the greenback with a big margin of Rs4.93. But towards the close in the evening, the greenback settled for Rs207.23, after losing Rs4.70 in its value.

Pakistan is currently facing a huge problem of depleting foreign reserves with US dollar thrashing Pakistani rupee continuously as it touched historic high of Rs212 on Wednesday.

Pakistan is desperately trying to win an IMF deal but it still looks a couple of weeks away from reaching consensus.

However, Finance Minister Miftah Ismail revealed yesterday on his Twitter handle: “The Chinese consortium of banks has today signed the RMB 15 billion ($2.3 billion) loan facility agreement after it was signed by the Pakistani side on Wednesday. Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction.”

But as the rollover has not yet reached, the Pakistani market signals are mixed, running on uncertainty.

Pakistan's total liquid foreign exchange reserves clocked in at $14,210.4 million, down from $14,943 million last week, data from the central bank showed on Thursday.

The total liquid foreign exchange reserves are at their lowest since January 18, 2019. The break-up showed that the foreign reserves held by the State Bank of Pakistan are at $8,237.7 million. The SBP said that decline of $748 million in its foreign reserves in the outgoing week was due to external debt repayments.

The SBP reserves are the lowest since October 25, 2019, which means that Pakistan has an import cover of only 1.21 months. Meanwhile, the net foreign reserves held by commercial banks stood at $5,972.7 million.

The central bank said that it was optimistic that reserves held by it are expected to increase in the coming days on the realisation of proceeds of the CDB loan.

Former interior minister and Awami Muslim League Chief Sheikh Rashid Ahmad tweeted on Friday: “Foreign exchange reserves are low enough to pay even less than 2 months’ import bill. The IMF order has not come but Rs50 levy on petrol will kill the poor. People will not get electricity in July, and no gas in winter. In what capacity Rana Sanaullah is giving date for the appointment of new Army Chief?” 

Reporter Ashraf Khan

Categories : Business

News Desk

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