Pakistani rupee busts US dollar’s upward trajectory, gains 71 paisasBreaking

September 23, 2022

The value of Pakistani rupee was strengthened against the US dollar as the greenback lost 71 paisa in its value in the interbank trading on Friday. According to the data provided by money traders, the rupee showed muscles during morning session today as its value appreciated against the US dollar which was traded at Rs239, down by 71 paisa in the interbank by 10:15am. Yesterday, the dollar was closed at Rs239.71. The local unit is facing slump for the last several trading sessions. During the last 52 weeks, Pakistani rupee lost 29.48% against the greenback while reaching its lowest at 239.94 on July 28, 2022, and the highest at 169 on September 23, 2021.

The State Bank of Pakistan on Thursday announced that country’s Current Account Deficit (CAD) fell to $0.7bn in August compared to $1.2bn in July. Cumulatively, Jul-Aug FY23 CAD declined by $0.5bn to $1.9bn compared to the same period last year mainly due to increase in exports by $0.5bn contraction in imports by $0.2bn, the bank concluded. The market is volatile as the world is committing to help the flood-hit Pakistan. On Sept 18, Saudi Arabia rolled over a $3 billion debt for one year on the existing tough terms and the International Monetary Fund also announced support for Pakistan’s flood-relief efforts but without giving any additional loan. IMF Resident Representative Esther Perez Ruiz on Sunday issued a brief statement, making clear the global lender’s approach towards Pakistan in the aftermath of the devastating floods.

Perez said that the IMF was deeply saddened by the devastating impact of the floods in Pakistan, offering sympathies to the millions of victims of the floods. “We will work with others in the international community to support, under the current programme, the authorities’ relief and reconstruction efforts, and especially their ongoing endeavour to assist those affected by the floods while ensuring sustainable policies and macroeconomic stability,” Perez said. Today, he Financial Times reported citing UN policy memo that Pakistan should suspend international debt repayments and restructure loans with creditors after recent floods added to the country financial crisis. The memorandum, which the UN Development Programme will share with Pakistan government this week, states that the country creditors should consider debt relief so that policymakers can prioritise financing its disaster response over loan repayment, the newspaper said.

Credit: Independent News Pakistan-INP