The PKR-USD exchange rate in the interbank market has depreciated by 3.1 percent from Rs 104.90 per US$ yesterday to Rs 108.25 per US$ on Wednesday.
At its peak, the PKR reached 109.20 against dollar, however, it appreciated to end the day with Rs. 108.25 per dollar.
State Bank of Pakistan, in relation with sudden spike, convened an emergent meeting to evaluate the situation. Meeting — that was joined by senior SBP officials — discussed the overall market situation and PKR-USD parity.
SBP said that macroeconomic indicators have been showing encouraging picture, such as decade-high real GDP growth, increase in investment, credit expansion to private sector, and subdued inflation; the deficit in the external account has been rising for some time.
Accordingly, the exchange rate adjusted in the market and SBP is of the view that this depreciation in the exchange rate will address the emerging imbalance in the external account and strengthen the growth prospects of the country.
SBP also said that the current exchange rate is broadly aligned with the economic fundamentals.
SBP said that it will continue to closely monitor the developments in the foreign exchange markets and stands ready to ensure stability in the financial markets.
Open market dealers in interbank market told ProPakistani that gap between demand supply of US dollar is widening and that is why PKR remained under pressure lately.
Dealers said that there is heavy demand of US dollar in interbank market for the payment of petroleum and other imports. They said that in such situations when demand is high, the supply is not appropriate and this is why PKR depreciated instantly.
Dealers said that SBP didn’t intervene the market.
Due to decline in PKR in interbank market, open market went under confusion as exchange companies halted the business and opted not to deal in any PKR-USD exchange.
Zafar Pracha, General Secretary of Exchange Companies Association and Mr. Malik Bostan, President of Forex Association, confirmed ProPakistani buying and selling of dollar remained halted throughout the day.
Impact of Rupee Decline:
Impact of rupee decline is very vital on the Pakistan’s economy. If PKR depreciates, on any day, the imports instantly become costlier while exports become cheaper.
Similarly, Government’s foreign currency loans become costlier in local currency term and this lead to increase in national bill.
old practices of exchange holders to make money art cost of consumers.
This is really shocking
Thanks to Imran Khan…
Nawaz’s Corruption to be precisely and all treacherous Presidents and PM’s before him.
What good did Donkey Khan do in KPK? His entire tenure went like “oye nawaz…” and collecting garbage from PPP.
Actually.. instead of slugging dirt on either party its best to ask an unbiased economist who’s an expert in the field the real reason why this happened and because of who’s fault.
Allah gave us brains…lets use them for once.
الله ہمیں دماغ دے
زانی کو زانی نا کہو یہ گند اچھلنے والی بات ہے
چرسی کو چرسی نا کہو یہ گند اچھلنے والی بات ہے
جواری کو جواری نا کہو یہ گند اچھلنے والی بات ہے
الزام خان کو الزام خان نا کہو یہ گند اچھلنے والی بات ہے
Ganjay ko Ganja na kaho, ye bhi gand uchalnay waali baat hai.
Corrupt ko Corrupt na kaho, ye bhi gand uchalnay waali baat hai.
i accept.
Too bad Imran khan didn’t got his name in Panama
Too bad he didn’t bought flats in London.
Too bad he didn’t left Pakistan when people were dying.
Too bad he brought government corruption in front of the nation.
Too bad he is not corrupt.
Too bad he did nothing wrong…. How Stupid he is.
Rupee has to devalue to support exporters. Due to low oil prices country can absorb the inflation that will come with devaluation.
کسی کو اسد عمر کی پارلیمنٹ میں پہلی تقریر یاد ہے جب اس نے اسحاق ڈار پر الزام لگایا تھا کہ ڈالر ١٠٧ سے اوپر لے جانے والا ہے اور پھر شیخ رشید نے استعفیٰ دینے کا کہا تھا کہ ١٠٠ سے نیچے گیا تو استعفیٰ دے دوں گا …. یہ ٢٠١٣ کی بات ہے اب ٢٠١٧ کے آخر میں اگر قیمت وہاں آ گئی تو بھی یہ حرامی سچے