The Pakistani Rupee (PKR) once again posted losses against the US Dollar (USD) in the interbank market today. It depreciated by 18 paisas against the greenback after hitting an intra-day low of Rs. 177.07 against the latter during today’s open market session.
It depreciated by 0.10 percent against the USD and closed at Rs. 176.92 today after halting movement and closing at 176.74 in the interbank market on Wednesday, 5 January.
The rupee reported losses against the USD less than 24 hours after the State Bank of Pakistan (SBP) amended the foreign exchange regulations and directed exporters to bring in foreign income proceeds within a maximum period of 120 days from the date of shipment.
The new measure was initially expected to positively impact foreign exchange inflows in the market but anything of the sort is yet to be successfully corroborated with in-progress financial indicators.
It should be noted that the federal government’s debt had swelled to an all-time high of Rs. 40.99 trillion during the first five months of the current fiscal year mainly due to the depreciation of the local currency and the State Bank of Pakistan’s (SBP) loan to the government against the allocation of Special Drawing Rights (SDRs).
In light of the PKR’s interbank performance during the trading hours earlier today, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted, “SBP through its circular has asked exporters to bring proceeds within 120 days VS 180 days previously. Narrowing of [the] number of days will initially speed up the pace of inflow, but won’t increase the receivables sizeably unless exports pick up. Hence, [the] impact will be thin”.
Conversely, the PKR reversed most of its losses against other major currencies in the interbank currency market today. It posted gains of seven paisas against the Euro (EUR), 49 paisas against the Pound Sterling (GBP), 74 paisas against the Canadian Dollar (CAD), and Rs. 1.28 against the Australian Dollar (AUD).
On the contrary, it lost four paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.
Source: Pro Pakistani