The Pakistani Rupee (PKR) continued its free fall against the US Dollar (USD) on Wednesday for the 16th straight session and reported losses in the interbank market. The local currency lost Rs. 0.05 against the greenback at the close of today’s session.
The PKR depreciated marginally by 0.02 percent against the USD and closed at Rs. 227.93 today. The PKR had lost 47 paisas against the greenback at the close of the previous session, closing at Rs. 227.88 while the open market rate crossed Rs. 270.
The scarcity of dollars in the country is not only seriously denting the economic activity in the country but has also panicked citizens. Finance Minister Ishaq Dar had to issue a clarification today that the government has no plan to access foreign exchange held with commercial banks.
Recently, the minister said that Pakistan’s foreign exchange reserves currently stand at $10 billion as $6 billion held by commercial banks also belong to the country. The statement prompted fears that the government may be planning to access the foreign exchange of citizens held with commercial banks.
During a press conference today alongside the prime minister, the finance minister however hinted that the government may have to “do more” before negotiations with the International Monetary Fund (IMF) for the 9th programme review restart.
Earlier this week, the international community pledged to give Pakistan over $10 billion to help recover from last year’s floods at the International Conference on Climate Resilient Pakistan in Geneva.
There was some positive news on Tuesday as Saudi Arabia hinted at rescuing Pakistan from its balance of payment problem. According to the Saudi state media, Crown Prince Mohammed bin Salman has directed authorities to consider increasing the cash deposit with the State Bank of Pakistan (SBP) as well as investment in the country.
The PKR also reported minor losses against some of the other major currencies in the interbank market today. It lost Rs. 0.27 against the Euro (EUR), and Rs. 0.097 against the Pound Sterling (GBP).
However, the rupee gained against the Canadian Dollar (CAD), recouping Rs. 0.39.
