Pakistani rupee makes it 13 in a row against US dollar in interbank market

Published: 08:49 PM, 22 Sep, 2023
Business
Pakistani rupee makes it 13 in a row against US dollar in interbank market

There appeared to be no turnaround as the Pakistani rupee appreciated for 13th successive session against the US dollar in the interbank market on Friday, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the rupee registered another steady gain as it improved its value by Rs1.02 against the greenback and ended the day at Rs291.76.

On Thursday, the Pakistani rupee gained by 0.38% in the interbank and closed the day at Rs292.78.

The rupee has been on a merry run in recent days after hitting a record low of Rs307.1 in the interbank market on September 5.

The change in fortune comes as State Bank of Pakistan introduced structural reforms in the Exchange Companies’ (ECs) sector and administrative measures taken by the authorities to curb currency smuggling and hoarding. Resultantly, the foreign exchange reserved held by the State Bank of Pakistan have registered a handsome increase.

However, two fears now haunt the currency market these days — how long this crackdown will continue and how long this exchange rate will be sustainable.

Experts believe the inflow of remittances after crackdown has started increasing through banks while the higher selling of export proceeds provided much-needed liquidity to importers.

Currency dealers in the open market confirmed that inflows of remittances have increased and the exchange companies have been selling surplus millions of dollars to banks every day.

The buyers have also become cautious after the crackdown and are not buying dollars from the open market.

The crackdown has virtually halted the inflow of remittances through Hundi and Hawala. Now the inflows are being directed towards the banking channels.

Another positive development was a health increase in the forex reserves. The foreign reserves held by the State Bank of Pakistan have increased by $56 million to $7,695.3 million during the last week.

The total liquid foreign reserves held by the country stood at US$ 13,186.6 million as of 15-Sep-2023. The break-up of the foreign reserves position is as under:

Foreign reserves held by the State Bank of Pakistan: US$ 7,695.3 million.

Net foreign reserves held by commercial banks US$ 5,491.3 million.

Total liquid foreign reserves US$ 13,186.6 million

https://twitter.com/StateBank_Pak/status/1705103696236105977 

API Response:

Reporter Ashraf Khan

 

 

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