Dollar depreciates by Rs15 to Rs271 in interbank market

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After the $3 billion standby arrangement agreement with the International Monetary Fund (IMF), the dollar fell by Rs 15 to Rs 271 in the interbank market on the bank’s first trading day.

It may be recalled that the value of the Pakistani currency had increased by Rs5 against the US dollar in the open market yesterday; experts had expected that banks would open after the holidays (today) so this trend would continue in the interbank.

According to the Forex Association of Pakistan, the dollar fell by Rs 15 to Rs 271 in the interbank market, according to the central bank, which closed at Rs 285.99 on the last day before the holidays.

Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan, said that after the agreement with the IMF, there has been a good impact on the economy, the confidence of investors has been restored, now it is expected that foreign investment will also come, the stock has also improved.

But it remains to be seen to what extent we can control the rate, the dollar coming down and then not staying in its place causes frustration and negative effects among the people, as before, it should not be that the rate is low and then goes up.

He said that if we take things as a whole, then it can be a matter, otherwise there will be problems in the long term on Pakistan’s economy because we have to pay about $ 50 to 55 billion in three years.

Analysts have said that the market can stabilize between Rs272 and Rs276 today, after which the SBP will play an important role in guiding the currency level. They said that today the dollar traded at a minimum of Rs 270 and a maximum of Rs 274.50 against the rupee, he said that today New York is closed, so its full effect will be visible tomorrow.

“We estimate that the value of the dollar can fall to Rs 265, as soon as the foreign exchange reserves start increasing, those who have dollars can be in chaos and if this happens, you will see an increase in remittances through the banking channel because people will not take risks in this trend,” they added.

Malik Bostan, chairman of the Exchange Companies Association of Pakistan, said yesterday that after the IMF agreement, the dollar will continue to depreciate in the interbank market on Tuesday.

On June 30, Pakistan received a short-term much-needed bailout package of $3 billion from the IMF, giving a respite to the economy, which was feared to default.

On June 30, Pakistan and the International Monetary Fund signed a staff-level agreement on a $3 billion standby arrangement (SBA) for nine months after an eight-month delay in the release of funds under the $6 billion deal in 2019.