Rupee makes a simple profit for the dollar, closed on RS209
According to the Pakistani Forex Association (FAP), Greenback was traded at RS208.5 at the interbank market at 11:40 am, down from the closing of the previous day RS210.1.
However, it was closed at RS209.8 with local currencies reversing most of the previous profits. Overall, Rupee appreciates 0.14 percent.
Previously today, Chairman of FAP Malik Bostan has linked the initial profit of Rupee with the expansion of the loan program by these funds. “We hope to see further decline in Greenback, somewhere under RS200,” he told dawn.com.
Bostan also said that the decline in crude oil prices would help reduce the country’s import bill, which ultimately leads to inflation reduction. “All of this will eliminate pressure on the economy,” he said, adding that the country succeeded in “getting out of danger”.
Meanwhile, Komal Analyst Mansoor said that the market expects Greenback to go down to RS205 or below.
Changes will be gradual. At present, only the staff level agreement is achieved. I feel the market will move when the executive level agreement is reached,” he said.
Director of Global Mettis, Web -Based Financial and Analytical Portal, Saad Bin Naseer, however, quickly adds that “relatively small correction” due to the “strengthening trend” of the dollar.
The US dollar reached the highest two decades this week against a basket of currency before the expectation of an increase in aggressive interest rates from the federal reserve given the higher inflation reading,” Naseer said.
Previously today, the IMF confirmed that they had reached the staff level agreement with Pakistan. The agreement was realized after the government fulfilled the IMF request that the country reached a surplus of the RS152 billion RS152 billion to revive the bailout package.
The IMF team has reached the staff level agreement (SLA) with Pakistani authority for conclusions from the seven and eight reviews of the program supported by funded facilities (EFF). The agreement can be approved by the IMF Executive Board, “said the IMF statement.
He added: “Submitting to the council’s approval, around $ 1,177 million (SDR 894 million) will be available, so that the total disbursement under the program becomes around $ 4.2 billion.”
International money lenders said a team led by the head of the IMF mission to Pakistan Nathan Porter completed a discussion with Pakistan and that they also agreed to consider expanding EFF, currently worth $ 6 billion, until the end of June 2023, and added it with $ 720 million to expand its size to $ 7 billion.
The statement said this decision was taken to support the implementation of the program, meet the needs of higher Pakistani financing in FY23 and catalyze additional financing.
