The dollar is expected to fall below 277 rupees with the IMF approving the next tranche of loans this month.
KARACHI: Pakistani foreign exchange market are expecting a significant depreciation of the dollar against the rupee in the coming months. On the 11th of this month, the IMF announced that after the approval of the next loan tranche, the dollar is likely to depreciate and the dollar could fall below 277 rupees.
The rupee appreciated last week and closed at 281.40 against the dollar on Friday, NNI News reported. The dollar hit a high of $307 on September 5, but continued to decline due to government and security measures, reaching 277rs in October. After that, the price rose slightly, reaching 288rs.
However, since mid-November, a new downward trend in the dollar price has continued.
According to market sources, the value of the dollar could fall to below 277 rupees after the IMF approves the next loan on the 11th of this month. Pakistan will receive $700 million from the IMF, but there is another reason for the decline in the value of the dollar. Pakistan's foreign exchange reserves have increased by $2 billion since December 15th.
According to the State Bank, this increase is explained by an increase in the government's public revenues. After exceeding $2 billion, the state bank's foreign exchange reserves increased to $8.2 billion, bringing the total foreign exchange reserves to $13.2 billion. This has decreased significantly due to the curbing of dollar outflows. It is noteworthy that the value of the dollar has fallen in the interbank and open markets, but the value of the rupee against the dollar was also stable on Friday.
The government's foreign exchange reserves increased by $1.3 trillion, the highest level in six months, due in part to an influx of multilateral funds ahead of the issuance of the IMF tranche.
0 Comments