Rupee impressive recovery

Rupee impressive recovery

The Pakistani currency has displayed a remarkable recovery for the second consecutive working day, with a gain of 0.21% or Rs0.59 against the US dollar in the interbank market, resulting in a rate of Rs286.45 on Thursday.

This positive trend follows Finance Minister Ishaq Dar’s announcement that China’s EXIM Bank has extended the repayment period for loans amounting for $2.4 billion, which were originally due in FY24 and FY25.

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This move has significantly contributed to stabilize the country’s foreign exchange reserves.

In addition, the central bank also gave permission to currency dealers in the open market to import 50% of US dollars in cash from Dubai and Qatar, with the condition that they export surplus foreign currencies.

As a result, there has been an increase in the availability of the US dollar in the retail market. This arrangement has initially been approved for approximately six months, with the expiration date set as December 31, 2023.

Online Bank Transaction for import

The remaining 50% of foreign currency will be imported by dealers through online transactions into their bank accounts in Pakistan, which will then be surrendered in the interbank market.

In the open market, the currency has experienced further growth, rebounding by 0.34% or Rs1, settling at Rs291/$ on Thursday. This reduction in the exchange rate gap to Rs4.55 brings it closer to the International Monetary Fund’s recommended level of 1.25%.

Read more | Pakistan finally gets $3b IMF loan

Overall, these positive developments have bolstered confidence in the Pakistani rupee’s prospects, with the Exchange Companies Association president anticipating that it will partially recoup losses in the coming days due to expectations of easing political tensions.

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