Rupee Suddenly Devalues Against US Dollar

Pakistani Rupee is under pressure and has lost its value by up to Rs. 4.50 per dollar in the interbank market. State Bank of Pakistan (SBP) said that they have their eye on the market and will intervene if necessary.

On Friday, the last working day of the week, the interbank market’s behavior was very strange. At the start of the trading session, Rupee was under pressure and in just a few minutes its value declined from 105.50 to Rs. 110 per US Dollar.

A spokesperson of SBP, Abaid Qumar, told ProPakistani that the exchange rate regime in Pakistan is the market base and the market is setting the rate according to supply and demand. He added,

SBP has its eye on the exchange rate and we are looking at why the rupee is declining. SBP will take required measures if necessary. We’re also looking into the matter if there is any speculation in Rupee’s value.

Chairman of Forex Association of Pakistan, Malik Bostan, said that the news of Rupee declining has been in circulation for a long time. International donor agencies are pressurizing Pakistan Government to devalue Rupee.

“There are no big payment demands in the interbank market. But international and local political scenarios are going dark and dollarization has started,” Bostan said.

Chief Executive of Paracha Exchange Company, Zafar Paracha, said that I don’t know why rupee is suddenly declining. The government is lying about the Rupee’s valuation. He said,

Since long the Government officials were saying that Rupee will not decline and they will maintain it at its current level, now they declined its value. This makes no sense.

It is worth mentioning that yesterday, SBP received $2.5 billion for the sale of $1 billion sukuk bonds and $1.5 billion euro bonds. Due to that, Pakistan’s overall foreign reserves went up to $22 billion.

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