Rupee gains marginally to reach Rs221.42

AIIB loan of $500 million, Saudi crown prince visit help stabilise rupee


Our Correspondent November 11, 2022

ISLAMABAD:

Pakistani currency maintained an uptick on the fourth consecutive working day, as it went up by 0.10% (or Rs0.23) to Rs221.42 against the US dollar in the inter-bank market on Thursday.

The domestic currency has cumulatively inched up by 0.24% (or Rs0.53) in the past four working days, according to State Bank of Pakistan’s (SBP) data.

The latest improvement in the currency came in the wake of the Asian Infrastructure Investment Bank (AIIB) announcement approving the lending of $500 million to Pakistan.

Besides, the forthcoming visit of Saudi Arabia Crown Prince and Prime Minister Mohammad bin Salman to Pakistan has also supported the rupee to stabilise around current levels.

The Crown Prince’s visit is expected to see the Kingdom announce an investment worth around $10 billion, including the setting up of a petroleum oil refinery in Pakistan.

More importantly, Finance Minister Ishaq Dar wants the local currency to return to its “fair value” in the range of Rs180-200 against the greenback. Dar is known for protecting the rupee against the US dollar.

To recall, the currency hit an all-time low at Rs239.94 on July 28, 2022. Later on, it fluctuated and approached a record low level again in September, but failed to cross it, ahead of Dar’s return to the ministry of finance.

Recently, SBP announced a crackdown on foreign currency hoarders and smugglers in collaboration with FIA. The central bank announced this following Dar’s directives, it was learnt.

 

Published in The Express Tribune, November 11th, 2022.

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