Multiple factors snip Pakistani rupee’s glide

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2022-11-21T10:56:00+05:00 News Desk

The US dollar has shown no signs of sliding as it is constantly on the upward trajectory in the interbank trading during last seven sessions, reported 24NewsHD TV channel.

According to money dealers, in the trading session on Monday the US dollar appreciated by 49 paisas ending the day at Rs223.66. 

On Friday, the greenback was closed at Rs223.17 as the rupee suffered a depreciation by 0.22%. 

Despite repeated assurances by Finance Minister Ishaq Dar and other government officials, the market has remained jittery over the default risk perceptions measured by the 5-year credit default swap which was jumped from 56.5pc to above 75pc on Wednesday, depleting forex reserves, postponement of ninth performance review of IMF $7 billion bailout package and a persistent political uncertainty in the country. 

To soothe the market nerves, Dar held a press conference via video link on Saturday. He said there were rumours that the country would not be able to pay $1bn on December 5 against the maturity of five-year sukuk, or Islamic bonds. But we have never defaulted before and we will not even be close to default, he said adding that the bond would be paid and there will be no delay in this and even arrangements had been made in principal for upcoming payments in the next year. 

The SBP officials have also been issuing statements assuring about country’s ability to meet the international financial obligations. 

A few days ago, SBP Governor Jameel Ahmad told reporters that the foreign exchange reserves were enough to repay all dollar-denominated international loans on time. 

The central bank on Friday said that the total liquid reserves held by the country stood at $13.80 billion as of Nov 11, 2022. 

The State Bank also stated today that country’s Current Account Deficit (CAD) was reduced owing to continuous decline in imports.

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