Pakistani currency maintained its uptrend for the fifth successive working day on Monday, reaching over six-week high at slightly above Rs283 against the US dollar in the inter-bank market as supply of the foreign currency increased.
According to State Bank of Pakistan’s (SBP) data, the rupee ticked up 0.02%, or Rs0.05, and closed at Rs283.21 against the greenback. The currency has cumulatively gained a net 0.85%, or Rs2.43, in the past around three weeks.
Exchange Companies Association of Pakistan (ECAP) reported that the rupee remained unchanged at Rs284.50/$ in the open market for the fourth consecutive working day.
Market talk suggests that a current account surplus of $9 million in November 2023, which came after a hiatus of four months, kept sentiment positive in the inter-bank market, helping the rupee to extend gains for another day.
Read Rupee stability brings early optimism
Besides, the signing of memoranda of understanding with China for investments of $10 billion in Pakistan and improvement in the central bank’s foreign exchange reserves also propped up the rupee.
Talking to APP, ECAP General Secretary Zafar Paracha said that workers’ remittances reaching Pakistan through currency exchange companies had surged 10-15% following a recent crackdown on hoarders and smugglers.
He said the government’s crackdown proved to be very effective in bolstering Pakistan’s reserves.
“We’ve seen a substantial rise in remittances flowing into the country through exchange companies, whose daily exchange value has increased to $50 million.”
Published in The Express Tribune, December 19th, 2023.
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