The Pakistani rupee (PKR) appreciated to 285 against the US Dollar (USD) in the open market today in tandem with last week’s interbank close of 285.9, following the stand-by agreement on a $3 billion bailout with the International Monetary Fund.
General Secretary of the Exchange Companies Association of Pakistan (ECAP) Zafar Paracha told reporters today that the value of the USD would decrease by Rs. 5 when interbank rates go live on Tuesday. He further tipped the PKR to jump to Rs. 275 in days to come.
“With the signing of the IMF agreement and the anticipation of grants from other countries, there is a prevailing downward sentiment, and it appears that the dollar will depreciate by an additional Rs. 5 tomorrow,” he said.
While today was a bank holiday and exchange companies were closed, open market trade was still operational with minimal movement across various counters across the country.
Paracha opined that foreign exchange reserves and the IMF grant solely would not be sufficient to repay the country’s loans and the government may need to take other steps to maintain the PKR stability. He stressed the importance of determining how well the USD spikes can be managed in the future, adding that the government should prioritize this aspect.
The ECAP general secretary also warned that Pakistan’s economy will continue to suffer and the rupee will stay under pressure until significant spending cuts are achieved.
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