KARACHI
Pakistani rupee maintained its winning streak against the US dollar in the interbank market for the eighth straight session and appreciated by Rs1.11 on Friday.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 297.96 against the dollar in the interbank market and closed at 296.85, showing an appreciation of 0.37 percent.
The rupee appreciated against the US dollar in the interbank market by Rs2.52 last week and Rs6.10 this week, while it has depreciated by Rs10.86 during the current fiscal year 2023-24, and Rs69.43 in the current year.
Meanwhile, the rupee remained stable in the open market and was quoted in the range of 296-300 a dollar. The rupee has appreciated by Rs31 in the last nine sessions. During the current week, the rupee appreciated by Rs5 in the open market.
The local currency has significantly gained in the past few days, with analysts attributing the rise to an ongoing crackdown on illegal dollar outflows. Currency dealers in the interbank said exporters have been selling dollars on a large scale, fearing further devaluation. Moreover, reports of increased vigilance of the Afghan transit trade also contributed to the rupee’s rise, they added.
On the other hand, the SBP has also stepped up supervision of the foreign exchange market, ordering banks to set up separate entities to conduct forex transactions and extending a clampdown on hard-currency hoarders and smugglers. The central bank has also decided to introduce structural reforms in the exchange companies’ sector to provide “better services to the general public and bring transparency and competitiveness”.
Meanwhile, foreign exchange reserves held by the central bank fell by $140 million to $7.638 billion in the week ending September 8, the SBP said on Thursday. The total reserves of the country dropped by $48 million to $13.079 billion. However, the reserves of commercial banks increased by $93 million to $5.440 billion. The forex reserves are enough to cover 1.70 months of import payments. The SBP attributed the decline in the forex reserves to the external debt repayment.
