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Dollar gains 91 paisas against rupee on IMF uncertainty

Dollar gains 91 paisas against rupee on IMF uncertainty

Dollar gains 91 paisas against rupee on IMF uncertainty

Dollar is being traded at the historic high of Rs176.10 at midday in the interbank market. Image: File

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KARACHI: The dollar rebounded and gained 91 paisas to close at Rs174.67 on Thursday in the interbank foreign exchange market, dealers said.
The foreign currency breaks the three-day gaining streak of the rupee after a statement issued by the adviser to the prime minister on finance regarding the International Monetary Fund (IMF) conditions to continue the loan programme.
The exchange rate ended at Rs174.67 against the dollar from the previous day’s closing of Rs173.76 in the interbank foreign exchange market.
A day ago, Adviser to the Prime Minister on Finance and Revenue Shaukat Tareen, outlined the conditions attached to the continuation of the $6 billion Extended Fund Facility of the IMF.
The dealers said the market was uncertain about the inflows; following the statement. They said on October 26, 2021, a pledge was made by the Saudi government to transfer cash, amounting to $3 billion to the State Bank of Pakistan (SBP) but the same was not realized so far. Now the uncertainty about the IMF loan tranche also resulted in panic buying of the dollars.

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Last week, the central bank announced to increase the average CRR, to be maintained during a period of two weeks by scheduled banks to 6 percent from 5 percent and the minimum CRR to be maintained each day from 3 per cent to 4 per cent.
CRR is the amount of money that the banks are required to keep with the State Bank of Pakistan and is applicable on demand and time liabilities with the tenor of less than a year.
The time liabilities with the tenor of more than a year would continue to be exempted from the maintenance of cash reserves.
Since this announcement, the rupee recovered for three consecutive sessions during the current week.
The SBP decided the measure after the rupee hit an all-time low of Rs175.73 against the dollar on November 12, 2021.
The burgeoning import bill is continuously threatening the balance of payments of the country. The import bill registered a growth of 65.15 percent to $25.06 billion during July-October 2021, compared with $15.17 billion in the same period of the last fiscal year, according to the Pakistan Bureau of Statistics.
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The rupee remained under pressure since the start of the current fiscal year. The local currency fell Rs17.13, or 10.87 per cent, from June 30, 2021 closing of Rs157.54 to the closing of Rs174.67 on November 18, 2021.
In the open market, the buying and selling of the dollar have been recorded at Rs173.50/Rs175.20.

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