Rupee bounce back, reaches Rs286.45

KARACHI: In a noteworthy development, the Pakistani currency has showcased a remarkable recovery for the second consecutive working day. It registered a gain of 0.21% or Rs0.59 against the US dollar in the interbank market, surging to Rs286.45.

This upward trend in the exchange rate reflects a positive trajectory for the national currency against its foreign counterpart.

In a recent development, there has been a notable surge in the country’s foreign exchange reserves following an announcement by Finance Minister Ishaq Dar. According to the minister, China’s EXIM Bank has taken the crucial step of extending the repayment period for loans amounting to $2.4 billion, which were initially scheduled for repayment in FY24 and FY25. This significant move has played a vital role in stabilizing the nation’s financial situation and bolstering its foreign exchange reserves.

Earlier, the central bank granted permission to currency dealers in the open market to import 50% of US dollars in cash from Dubai and Qatar, provided they export surplus foreign currencies (other than US dollars). This resulted in a surge in the supply of the greenback in the retail market. The permission for this arrangement is initially granted for about six months, expiring on December 31, 2023.

“In a significant development, it has been announced that the dealers will now import the remaining 50% of foreign currency through secure online transactions into their designated bank accounts within Pakistan. Subsequently, these funds will be voluntarily surrendered in the interbank market. This move is expected to have notable implications for the country’s foreign exchange dynamics and marks a noteworthy step in streamlining currency operations.”

in the open market, the currency made a noteworthy recovery by 0.34% or Rs1 against the US dollar, ultimately settling at Rs291/$. In a significant development, the exchange rate gap has been considerably reduced to Rs4.55, moving it closer to the recommended level of 1.25% set by the International Monetary Fund (IMF).

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