The rupee depreciated by more than Rs 2 against the dollar during interbank trade on Wednesday due to delays in finalizing an agreement with the International Monetary Fund (IMF).
According to the Forex Association of Pakistan, the local currency depreciated by Rs 2.09 against the dollar and was trading at Rs 210.
According to the State Bank of Pakistan, the dollar closed at Rs 207.91 on the last day of the business week last Thursday.
The dollar continued to appreciate in the currency market, but the influx of 2. 2.3 billion from China on June 23 changed the scenario as the rupee recovered from Rs 4.70 in a single session to Rs 211.93 to Rs 207.23.
However, the US dollar stopped the rupee from appreciating and on July 5, the interbank market rose by Rs 2.38, the first rise in the new financial year and the dollar has continued to appreciate since then.
Saad bin Naseer, director of the web-based financial data and analytics portal Mattis Global, noted that the market reopened after five days.
He said that the inflow of remittances was not as high as expected due to which the rupee is under pressure at the moment, this pressure will remain until the agreement with the IMF is reached.
Analyst Komal Mansoor also expressed similar views, saying that the inflow of dollars from abroad was limited and that the reason for the rise in the value of the dollar today was the fear that the IMF agreement might not be fulfilled any time soon. Will
He said the list of pre-loan measures sought by international lenders has been steadily increasing and is spiraling out of control, with analysts fearing bankruptcy this year.
On the other hand, Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan, attributed the fall in the rupee to the central bank’s approval of payments for imports.
He said the demand for dollars in the interbank market was high as the SBP had allowed import payments that were due.
He attributed the rupee’s decline to delays in the IMF deal, saying the market had no hope that the money would be received any time soon as new demands were emerging every day.
Zafar Racha said that even from the statements of the ministers, it seems that they are tired of the IMF, this is not a good situation and the political situation is not very good for the economy.
“Unless we get a lot of money from the IMF or friendly countries, the situation will not improve. Contrary to the earlier impression that we will get money from the IMF,”