No agreement with IMF on exchange rates: SBP  

• Exchange Rate is market determined, says SBP on Friday.
• Back in July last year, IMF tweeted about the inclusion of exchange rate assumption in its published Staff Report on Pakistan.

The State Bank of Pakistan (SBP) refuted on Friday false speculations, maintaining that there was no agreement on exchange rate target under the International Monetary Fund (IMF) program.

“Under the IMF-supported program there is no agreed target level for exchange rate. Exchange Rate is market determined,” said SBP in a series on tweets.

The central bank explained the mechanism of exchange rate saying, “Exchange rate is determined by market forces of demand and supply and is a reflection of existing BOP (Balance of Payment) position. Forward exchange rates are determined by the existing spot rates and Interest rate differentials of the relevant period i.e. time value of money".

(2/3) Forward #exchange rates (ER) r not a forecast of future exchange rates. #IMF Report on #Pakistan includes ER assumptions which r not predictions. Under the IMF-supported program there is no agreed target level for exchange rate. ER is market determined. @imf_pakistan #SBP

— SBP (@StateBank_Pak) January 10, 2020

“Forward exchange rates (ER) are not a forecast of future exchange rates. IMF Report on Pakistan includes ER assumptions which are not predictions."

Back in July last year, IMF tweeted about the inclusion of exchange rate assumption in its published Staff Report on Pakistan. “The published Staff Report on Pakistan includes exchange rate assumptions which are not predictions. Under the IMF-supported program there is not agreed target level for the exchange rate,” tweeted IMF.

The published Staff Report on Pakistan includes exchange rate assumptions which are not predictions. Under the IMF-supported program there is not agreed target level for the exchange rate , which is market determined.

— IMF Pakistan (@imf_pakistan) July 11, 2019