The rupee strengthened against the US dollar at 206.87 in the inter-bank market on Tuesday compared to 207.94 on Monday, according to the State Bank of Pakistan. The rupee has depreciated sharply in the past few months in the wake of delay in revival of the stalled International Monetary Fund’s (IMF) loan programme, poor macroeconomic indicators and political uncertainty. It plummeted to an all-time low at 211.93 to a dollar on June 22. Pakistan is expected to receive around $1 billion in the next loan tranche from the IMF once its $6 billion programme is officially revived. The resumption of the programme will unlock inflows of foreign currencies from other multilateral and bilateral sources as well and improve the country’s capacity to make international payments. The development will stand positive for the rupee. Apart from that, China rolled over its loan of $2.3 billion for Pakistan and deposited it with the State Bank.
Published in The Express Tribune, June 29th, 2022.
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