Pakistan

Currency: Rupee weakens against dollar

Monthly average remittances for the first eight months of the fiscal year clocked in at $1.154 billion.

Reuters June 05, 2013

KARACHI: The rupee ended weaker at 98.53/98.57 against the dollar compared to Monday’s close of 98.46/98.51. Heavy debt repayments to the International Monetary Fund (IMF) have been putting a dent in the central bank’s reserves which in return puts pressure on the rupee.

Pakistan, on March 28, successfully paid its 11th instalment worth $143.75 million of Standby-Arrangement (SBA) to the IMF. The next IMF repayment of $391 million was due at the end of May. Meanwhile, overseas Pakistani workers have so far remitted $9.234 billion in the ongoing fiscal year, a growth of 7.47% year-on year, or $642 million.

Monthly average remittances for the first eight months of the fiscal year clocked in at $1.154 billion as compared to $1.074 billion during the corresponding period of the previous fiscal year. Overnight rates in the money market fell to 7% from Monday’s close of 9.4%.

Published in The Express Tribune, June 5^th, 2013.

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