The Pakistani rupee has become the worst-performing currency in Asia in 2022, as it melted down a fresh 0.72% (or Rs1.52) to a new all-time low at Rs211.48 against the US dollar in the inter-bank market on Tuesday.
The latest drop in the local currency came despite Finance Minister Miftah Ismail’s assurance to the nation on Monday evening that the International Monetary Fund (IMF) would revive its $6 billion loan programme in a day or two.
The rupee slumped to an intra-day low at Rs212.21 before partially recovering later in the day. The rupee had closed at Rs209.96 against the greenback on Monday, according to the State Bank of Pakistan (SBP).
Cumulatively, it has devalued 34.23% (or Rs53.94) in the past one year compared to June 30, 2021 close at Rs157.54.
A local media outlet reported that the local currency performed the worst in the current calendar year compared to 12 peer regional countries.
The rupee has dropped 16.50% in the current calendar year to date, followed by the Japanese yen, which lost 15.50% of its value.
Other regional currencies dropped in the range of 0.68% to 8.10% including the Hong Kong dollar, Singaporean dollar, Indonesian rupiah, Indian rupee, Chinese renminbi, Malaysian ringgit, Thai baht, Philippine peso, Taiwanese dollar and South Korean won.
Experts said the prolonged delay in the resumption of IMF loan programme and continuous depletion of the country’s foreign exchange reserves had continued to pull the rupee down.
The rupee has weakened way below its fair value estimated at around Rs190 against the greenback.
The reserves have slipped below $9 billion, indicating a worsening balance of payments crisis.
A few commercial banks reported the other day that they ran short of US dollars to pay for imports. The statement pulled the rupee down.
The central bank, however, clarified on Tuesday that there was no shortage of foreign currency at commercial banks, nor with the central bank.
Published in The Express Tribune, June 22nd, 2022.
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