KARACHI
Pakistani rupee improved against the US dollar in the inter-bank market for the seventh straight session on Wednesday and appreciated by 24 paisas (+0.08 percent).
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 284.38 against the dollar in the interbank market and closed at 284.14.
Overall, the rupee improved by Rs2.46 during the previous three weeks. Similarly, the rupee improved by Rs4.15 during the current fiscal year 2023-24. However, the rupee depreciated by Rs53.30 in the current year. The rupee shed Rs3.69 against the US dollar in November after gaining Rs6.26 (+2.23 percent) against the greenback in the month of October.
The currency surged more than 6 percent in September to become the top performer in the world.
Similarly, the local unit gained 50 paisas against the greenback in the open market.
The rupee was quoted in the range of 282-285 a dollar as compared to 282.5-285.5 in the previous session. The rupee shed 50 paisas against the greenback last week.
In a related move, the SBP reported a rise of $77 million in foreign exchange reserves in the week ending November 24, bringing the total to $7.257 billion. The country’s overall reserves also saw an increase of $91 million, reaching $12.393 billion. Commercial banks experienced a $14 million uptick in reserves, totaling $5.136 billion. While the SBP did not provide a specific reason for the reserve growth, analysts speculate that the central bank might have engaged in dollar purchases from the market to bolster its holdings.
This development follows Saudi Arabia’s extension of a $3 billion deposit with the SBP for an additional year. Initially provided as a loan to Pakistan in 2021, the deposit was set to mature on December 5 but has been rolled over into 2023. In a statement, the SBP highlighted that this extension reflects Saudi Arabia’s continued support for Pakistan, aiming to bolster the country’s foreign currency reserves and contribute to its economic growth.
The extension of the Saudi deposit is seen as beneficial for Pakistan, particularly as it nears its gross financing needs. Analysts suggest that this move strengthens Pakistan’s agreement with the International Monetary Fund (IMF), potentially paving the way for the approval of the next $700 million tranche under the standby arrangement. If approved by the IMF board next month, the total amount disbursed by the IMF to Pakistan would reach $1.9 billion.
