Pakistani Rupee (PKR) has experienced a five percent jump against AED after the country secured a loan deal with the International Monetary Fund (IMF), as reported by Khaleej Times.
This development is predicted to further strengthen PKR in the coming days. However, industry experts have expressed concerns about the PKR’s volatility in the weeks ahead. This is because of the political uncertainty and lower foreign exchange reserves.
It is important to note that fluctuations in PKR’s value may continue during this period. On Tuesday, PKR saw a notable appreciation of nearly five percent against USD (from 285.50 to 272) and also improved against AED (from 77.73 to 74.05).
The recent loan package of $3 billion from the IMF, secured by Pakistan on Friday, played a key role in boosting PKR’s value on Tuesday.
Pakistan’s total liquid foreign reserves are currently valued at $9,340.8 million, with the central bank holding $4,069.9 million of those reserves.
As quoted by Khaleej Times, Rajiv Raipancholia, the CEO and Managing Director of Orient Exchange, commented on the market situation, stating, “The rupee has lost more than 20 percent this year, so a five percent appreciation is acceptable by the market.”
A spokesperson from LuLu Exchange also highlighted some factors contributing to the rise in PKR’s value. The spokesperson mentioned the expected appreciation of the currency in the interbank market, as markets were closed during the recent Eid holidays and a bank holiday in Pakistan on Monday.
Also, PKR is expected to remain unstable but with a positive outlook. This is due to the anticipated financial inflows from the IMF’s package. In the short term, PKR may trade within a range of 70 to 76 against the AED, according to a spokesperson from LuLu Exchange.
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