ANI
21 Jun 2022, 20:55 GMT+10
Islamabad [Pakistan], June 21 (ANI): Owing to quarter-end payments and delay in the revival of the International Monetary Fund (IMF) programme, the Pakistani rupee on Tuesday breached 211-a-US dollar, losing Rs 2 during intra-day trading.
The US dollar is trading at Rs 211.99 as of 10:53 am, Tresmark data shows, reported Geo News.
The Pakistani rupee remained highly volatile and continued its losing streak despite Finance Minister Miftah Ismail claiming that the International Monetary Fund (IMF) programme will be revived within the next two days.
The rupee continues its downtrend, which has also been attributed to the quarter-end payments due to the country's rising import bill, widening current account deficit and depleting foreign exchange reserves other than the delay in the revival of the IMF programme, reported Geo News.
The latest fall since the start of the week in the rupee's value against the greenback comes after traders resorted to panic buying on reports that some commercial banks had run out of foreign currency.
Businessmen have urged the State Bank of Pakistan (SBP) to play its due role in controlling the free-fall of the rupee.
However, the central bank seems helpless to control the situation as it cannot supply dollars in the market to support the rupee since its own stock of dollars also stands at a depleted level.
Pakistan's foreign exchange reserves (held by the SBP) have depleted to a critical level and the country has less than six weeks of import cover remaining. The reserves are currently below USD 9 billion.
The country is fulfilling the prerequisite conditions to revive the IMF loan programme to avoid default on international payments, reported Geo News.
"The currency will continue to fall until Pakistan manages to strike a staff-level agreement with the International Monetary Fund (IMF)," AA Commodities Director Adnan Agar said earlier.
The analyst was of the view that the investors' confidence is completely shattered which can only be strengthened by positive development on the IMF front.
Agar also mentioned that depleting foreign exchange reserves have triggered panic buying, giving speculators a chance to play with the demand and supply of the greenback.
Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by over 30 per cent (or over Rs 52) compared to the previous fiscal year's close at Rs 157.54, reported Geo News.
Meanwhile, the State Bank of Pakistan tightened restrictions in an attempt to ease dollar shortages and conserve eroding foreign exchange reserves amid IMF loan uncertainty, commercial banks have been asked to seek the central bank's permission before initiating import transactions worth USD 100,000.
"Earlier, banks were needed to inform the SBP if they wanted to start processing the trade documents such as a letter of credits (LCs), other papers and making payments for the imports of certain goods worth USD 500,000," a banking source familiar with the development told The News.
The reserves held by the central bank fell by USD 241 million or 2.6 per cent to USD 8.98 billion as of June 10 -- a cover for 1.32 months of imports. The SBP, however, said it had not stopped banks from making import payments, reported Geo News. (ANI)
Get a daily dose of Nepal National news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Nepal National.
More InformationNEW YORK CITY, New York: To comply with the requirements of the "Made in America" laws, a $7.5 billion federal ...
LONDON, England: During a Bloomberg conference held in London this week, Luke Ellis, CEO of hedge fund Man Group, said ...
NEW YORK, New York - Wall Street jumped on Friday, although gains were modest after bank shares in Europe came ...
LOS ANGELES, California: Some 30,000 education workers in Los Angeles, backed by teachers, went on a three-day strike, canceling school ...
LONDON, England: Despite rising air fares, a potential global economic recession and risks of gridlock at some airports in Europe ...
WASHINGTON D.C.: The US Commerce Department has proposed new laws aimed at preventing China and other countries deemed of concern ...
The US president praised the West, while calling relations between Moscow and Beijing ?vastly exaggerated?The global community is paying too ...
Naypyidaw [Myanmar], March 25 (ANI): An earthquake of magnitude 4.0 on the Richter scale hit Myanmar on Saturday, according to ...
Kabul [Afghanistan], March 25 (ANI): As many as 147 Afghan refugees returned from Iran through the Islamqala border in eastern ...
Islamabad [Pakistan], March 25 (ANI): Pakistan police on Saturday launched a crackdown on party workers and blocked the road leading ...
Guwahati (Assam) [India], March 25 (ANI): Assam Chief Minister Himanta Biswa Sarma and Singapore High Commissioner Simon Wong on Saturday ...
Rameshwaram (Tamil Nadu) [India], March 25 (ANI): A Sri Lanka national based in the United Kingdom was apprehended at Rameshwaram ...