KARACHI: The rupee saw one of its most stable weeks in recent times, appreciating 0.11% in the inter-bank market across the five sessions to settle at 223.95 against the US dollar.
However, worries over informal channels of currency trading gained traction as experts said rampant smuggling and prevalence of a black market was hitting Pakistan’s efforts to reduce volatility in the exchange rate. At the same time, many believe higher rates in the ‘black’ or illegal markets were encouraging remittances to be sent through informal channels.
On the economic front, Pakistan authorities and the International Monetary Fund (IMF) continued talks on the ninth review with little to no tangible outcome on the next tranche.
During the end of the week, Pakistan’s central bank stated it has transferred payment for a bond obligation of $1 billion, which would likely reduce foreign currency reserves. At the same time, it said it has received $500 million from the Asian Infrastructure Investment Bank (AIIB), a development that would reduce half the reduction in reserves in coming weeks.
However, fundamentally, the currency remained under pressure as a wider trade deficit – mainly on account of higher imports – was reported with remittances unlikely to compensate when data is revealed later this month.
Open-market rates
In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 229.25 and 231.50, respectively. Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 248.50 and 250.50, respectively. Against UAE Dirham, the PKR remained unchanged for buying while gaining 15 paisas for selling, closing at 65.70 and 66.20, respectively. Against Saudi Riyal, the PKR gained 40 paisas for buying and 50 paisas for selling, closing at 63.30 and 63.80, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 223.75
Offer Close Rs. 224.75
Bid Open Rs. 224.00
Offer Open Rs. 225.00
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Weekly Open market rates for dollar
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Bid Close Rs. 229.25
Offer Close Rs. 231.50
Bid Open Rs. 228.75
Offer Open Rs. 231.00
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Copyright Business Recorder, 2022
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