Pakistani rupee edges up against US dollar in interbank trade
April 29, 2023 02:01 AM
The money exchange market witnessed a lackluster performance during the interbank trade on Friday as the Pakistani rupee edged up by eight paisas against the US dollar, reported 24NewsHD TV channel.
According to the State Bank of Pakistan, at the start of the trade today, the US dollar was appreciated by gaining eight paisas in its value. But soon the greenback slid and the Pakistani rupee was appreciated by eight paisas, ending the day at Rs283.84 in the interbank.
On Thursday, the US dollar performed strongly against the Pakistani rupee and made a solid gain by adding 53 paisas to its value against the local currency and ended the day at Rs283.92.
Pakistan is facing severe forex reserves crunch and is trying to shore up its reserves.
In its press release on Thursday, the State Bank of Pakistan announced that the foreign exchange reserves held by SBP increased by $30.3 million to $4.46 billion during the week ended on April 20, 2023.
Similarly, the country's total reserves jumped by $59.4mn to $10.02bn.
The reserves held by commercial banks moved up by $29.1mn to $5.56bn.
Pakistan has been in talks with the International Monetary Fund since end-January to resume the $1.1 billion loan tranche that has been on hold since November.
A deal with the IMF will also unlock other bilateral and multilateral financing avenues for Pakistan to shore up its foreign exchange reserves.
In a key development, the United States Thursday called on Pakistan to move ahead on stalled reforms sought by the IMF.
Pakistan signed a $6.5 billion bailout package with the IMF in 2019 but less than half has been released as the country reneges on conditions.
"The reform(s) that Pakistan and the IMF agreed to are not easy, but it's crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow Pakistan's economy," said Elizabeth Horst, the State Department official in charge of Pakistan.
"The United States is going to continue to support Pakistan through technical engagements and assistance, particularly when it comes to encouraging Pakistan to enact policies that promote an open and fair and transparent business climate," she said at the Wilson Center think tank.
The International Monetary Fund wants Pakistan to boost its pitifully low tax base, end tax exemptions for the export sector and raise artificially low petrol, electricity and gas prices meant to help low-income families.
Pakistan earlier this month announced a boost of $1.3 billion from two close partners, China and the United Arab Emirates.
Open market rates
According to the open market rates updated at 8am today, the buying rate of one US Dollar was Rs 287.00, while the selling rate was Rs 290.00.
The buying rate of one Saudi Riyal (SAR) was Rs 75.80, while the selling rate was Rs 76.80.
The buying rate of one Euro (EUR) was Rs 315.80, while the selling rate was Rs 319.00.
The buying rate of one UK Pound Sterling (GBP) was Rs 356.40, while the selling rate was Rs 360.00.
The buying rate of one UAE Dirham (AED) was Rs 77.80, while the selling rate was Rs 78.80.
Reporter Ashraf Khan