Vengeful Pakistani rupee CRUSHES US dollar hard; up by Rs9.38
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The Pakistani rupee on Wednesday roared aloud as it avenged some of its major losses against the US dollar. The Pakistani rupee appreciated massively against the greenback during the interbank trading, reported 24NewsHD TV channel.
The rupee which scored a moderate gain of Rs1.38 in the morning session suddenly blasted by a little noon ostensibly on the back of IMF welcoming statement regarding successful completion of last prior action by Pakistan for the release of seventh and eighth review and the lowering import bill.
The forex dealers said that during the opening of trade activity in the forex market, the rupee held its ground and gained Rs1.38 in its value against the US dollar which slid to Rs237 by 10:15am but after the noon it exploded to one of its highest one-day gains.
Yesterday, the value of the US dollar was depreciated by 46 paisas bringing its exchange rate down to Rs238.38 at the close of the interbank trading.
The Pakistani rupee which was constantly losing its value since July 16, has regained its strength. With the start of trading activity this week, the Pakistani rupee has been appreciated by Rs10.57 since Monday.
In the open market too on Wednesday, the US dollar came down crashing and it concluded the day at Rs226.
The market has shown confidence in the value of rupee as the IMF on Tuesday confirmed that Pakistan has completed the last prior action required for the Fund’s combined seventh and eighth review by raising the petroleum development levy (PDL).
In a statement, IMF resident representative in Islamabad, Esther Perez Ruiz said, “With the increase in PDL on July 31, the last prior action for the combined seventh and eighth review has been met. The [Executive Board] meeting is tentatively planned for late August once adequate financing assurances are confirmed.”
The government had on Sunday increased the rate of PDL on all products to meet an outstanding pre-condition of the IMF.
According to sources, the IMF is likely to start the process for releasing the seventh and eighth tranches of a $6bn loan programme for Pakistan later this week.
Another factor which contributed to the appreciation of Pakistani rupee is a low import bill after the easing of pending oil payments in this month.
Finance Minister Miftah Ismail during his press conference a couple of days ago sounded hopeful believing that pressure on the rupee would be dissipated within two weeks and things would become easy. He said rupee value was improving after a reduction in our import bill which was a welcoming sign.
Our efforts to reduce imports have finally borne fruit. Imports in July, per FBR data, were only $5.0b compared to $7.7b in June. Given that we have pulled Pakistan back from the brink of default, our govt is determined to minimise the large current account deficit left by PTI.— Miftah Ismail (@MiftahIsmail) July 31, 2022
Reporter Ashraf Khan