Currency: Rupee gains against dollar
The rupee ended at 107.52/107.57 against the dollar.
KARACHI:
The rupee ended at 107.52/107.57 against the dollar, compared with Monday’s close of 107.56/107.61. Heavy debt repayments to the IMF have dented the central bank’s reserves, which have declined nearly 20% in the current fiscal year, putting severe pressure on the rupee. The last IMF repayment of $164 million was made on September 27, 2013. Overseas Pakistanis sent home a record $13.920 billion in the previous fiscal year (July 2012-June 2013), showing a growth of 5.56% or $733.64 million compared with $13.187 billion a year earlier. According to data provided by the State Bank, overseas Pakistanis sent $5.275 billion between July and October this fiscal year. Overnight rates in the money market remained flat at 7.50%.
Published in The Express Tribune, November 20th, 2013.
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gain of 4 paisa is not a gain but fluctuation before settling on a rate. Depreciation of rupee automatically increases the external debt without further borrowing . To arrest the fall unwanted items like gold, luxury cars.be banned for import or the custom duty be increased haevily to discourage the import.. Export to EU is also expected to improve due to exemption of import duty under GPS scheme.