After plunging to a record low last week, the PKR depreciated by another Rs6.5, trading at Rs269.1 per dollar in the interbank market around 12pm on Monday, according to data shared by the Forex Association of Pakistan (FAP).<\/p>\n
This equates to a loss of 2.48 per cent from Friday\u2019s close of Rs262.6.<\/p>\n
Exchange Companies Association of Pakistan (Ecap) General Secretary Zafar Paracha attributed the rupee\u2019s depreciation to a shortage of dollars. \u201cThe supply of dollars has not been restarted. We do not know where the banks will get the supply from but there is no arrangement,\u201d he said.<\/p>\n
He was referring to the SBP deputy governor\u2019s assurance to exchange companies\u2019 representatives in a meeting last week that commercial banks would be directed to supply dollars to the change companies.<\/p>\n
\u201cThere is a lot of panic in the market. If dollars are received, it will cool down a bit. As long as the market doesn\u2019t settle, people will not sell their remittances or export proceeds,\u201d Paracha said.<\/p>\n
The Ecap general secretary criticised the government for delaying the decision to remove an unofficial cap on the exchange rate, saying it had worsened the situation. \u201cThe policy should not be dictated by a finance minister\u2019s mood,\u201d he said.<\/p>\n
Tresmark\u2019s Head of Strategy Komal Mansoor said most analysts believed the rupee would weaken to Rs275 per dollar and then consolidate towards Rs270 after the International Monetary Fund (IMF) approved the disbursement of a $1.2 billion tranche.<\/p>\n
\u201cIn spite of interest rate hike, devaluation round, fuel price hike, there are still differences between Pakistan and the IMF. But it seems like Pakistan\u2019s position has changed from resisting to negotiating. If things fall into place, we may see IMF inflows as early as mid-February,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"
After plunging to a record low last week, the PKR depreciated by another Rs6.5, trading at Rs269.1 per dollar in the interbank market around 12pm on Monday, according to data shared by the Forex Association of Pakistan (FAP). This equates to a loss of 2.48 per cent from Friday\u2019s close of Rs262.6. Exchange Companies Association […]<\/p>\n","protected":false},"author":2,"featured_media":284231,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-310643","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n