KARACHI: The rupee’s losing ways in the inter-bank market continued during the previous week as the currency extended its depreciation run to 23 successive sessions against the US dollar.
On Friday, the rupee closed at 229.67 in the inter-bank market after a loss of 0.66% across five sessions. However, the subdued losses still do not bring the rupee’s value anywhere near its rates in the open and informal markets where the gap has widened considerably over the past few months.
During the week, the State Bank of Pakistan (SBP) reported a slight increase in its foreign exchange reserves. They now stand at $4.6 billion after an increase of $258 million on a weekly basis. However, the level is still at less than one month of import cover, raising alarm bells on the country’s precarious balance of payments’ position.
Meanwhile, a stalled bailout programme with the International Monetary Fund (IMF) amid Islamabad’s seemingly reluctant position to implement prior conditions including raising electricity and gas tariffs have meant inflows have been hard to come by.
At the same time, the UAE has rolled over its $2-billion loan and extended another of a billion-dollars. Saudi Arabia too, is currently studying ways to enhance its investments in Pakistan, but these developments are a long way away from resolving Pakistan’s immediate crisis.
While Pakistan has been unable to secure dollar inflows, the government and SBP have resorted to administrative measures to control foreign currency outflow. These have included delays in opening letters of credit, raising the backlog of such cases, and prompting the business community to raise concerns on the country’s raw material and commodity stocks’ situation.
The rupee is likely to remain under pressure amid low level of reserves with experts calling for the desperate revival of the IMF programme.
Open-market rates
In the open market, the PKR lost 1.50 rupees for both buying and selling against USD, closing at 237.75 and 240, respectively.
Against Euro, the PKR lost 50 paisas for buying and one rupee for selling, closing at 269.50 and 272, respectively.
Against UAE Dirham, the PKR lost 1.20 rupees for both buying and selling, closing at 69 and 69.60, respectively.
Against Saudi Riyal, the PKR lost 60 paisas for buying and 50 paisas for selling, closing at 66.50 and 67, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 229.65
Offer Close Rs. 230.65
Bid Open Rs. 228.15
Offer Open Rs. 229.15
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Weekly open-market rates for dollar
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Bid Close Rs. 237.75
Offer Close Rs. 240.00
Bid Open Rs. 236.25
Offer Open Rs. 238.50
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Copyright Business Recorder, 2023
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