Karachi: Pakistan Rupee Continues to Depreciate on Friday By maintaining a loss against the US dollar. This is because demand for a stronger dollar coupled with a stronger dollar against the major currencies affects local units.
The local unit closed at 228.18 after losing 2.76 in the interbank market. It was down from yesterday’s close of 225.42 – when it lost 2 rupees – according to the Bank of Pakistan (SBP).
The Pakistani currency has fallen 9.21, or 4.2%, against the dollar since trading this week. And it appears to be in the same format as seen two months ago. When the local unit touched 239.37 on July 28
Currency traders say the pressure on the rupee stems from a shortage of dollars in the market. The demand for the dollar rose after the government lifted the ban on luxury goods.
They also noted that as with the increase in imports Remittances and exports did not increase by the required amount. Thus causing a disruption in the supply and demand position of the dollar.
besides this The strong global dollar also led to the dollar’s appreciation against the US rupee, which compares the dollar’s value to six major rival currencies, up 0.04% to 109.73 after peaking. at 110.79 on Wednesday, a level not seen since June 2002.
Other factors that cause the rupee to depreciate include political uncertainty. Investor confidence in the economy is declining. Higher foreign exchange requirements (due to flood-related expenses unpaid letter of credit and increased Afghan trade) and slower inflows.
Damage and damage caused by floods across Pakistan Has outpaced the disbursement of the International Monetary Fund (IMF).
Preliminary estimates say the economic damage caused by severe flooding in Pakistan is $10-12.5 billion. This is when the government intends to dramatically reduce the Public Development Program (PSDP).
Analysts said the IMF’s resumption of loan programs has allayed concerns about a situation that could be difficult to manage in the near future. And it raises hopes of unlocking money from other multilateral lenders. and friendly countries
The worst floods to hit the economy in decades It tends to slow economic growth. Widespread floods have damaged cotton and rice harvests. This will reduce the country’s exports and increase the current account deficit.
Nationwide devastation also has an urgent need for aid and relief. which the government has purchased additional necessities
“The rupee recovered after the Bank of Pakistan withdrew its decision to allow exchanges to export the U.S. dollar to international markets,” a currency trader told The News.
The requirement of the Civil Aviation Authority (CAA) to declare all foreign cash held by arriving international passengers adds to the pressure on the rupee.
According to the CAA declaration, declaration forms containing information on domestic and foreign currencies should be filled out and given to airline employees.
Such restrictions are in place to comply with the Financial Action Task Force (FATF) guidelines.
Tourists are currently reluctant to import foreign currency. After the Federal Reserve allows the export of US currency. The exchange has shipped about $7 million since August 15.
