Currency: Rupee steady against dollar
Heavy debt repayments to the IMF have dented the central bank’s reserves.
KARACHI:
The rupee ended steady at 107.59/107.64 against the dollar, compared with Wednesday’s close of 107.58/107.63. 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 of Pakistan, 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 22nd, 2013.
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Having done masters in finance and working for multiple financial institutions we have seen this prolem in many countries. Expect a steep fall in value of rupee. Also sending money from overseas to the home country will result in big loss. Time to immediately withdraw money from banks as there could be a banking crisis in the making.