Dollar inches close to hit Rs178 mark thumbnail

Dollar inches close to hit Rs178 mark

The value of Pakistani rupee, once again, found itself on slippery grounds a day after performing slightly better in the interbank market. The rupee has slumped by Rs2.70 since December 1.

According to the State Bank of Pakistan, the local currency depreciated 0.06% Wednesday and fell by 10 paisas. The dollar traded at Rs177.98 on the interbank market.

It was being expected that Pakistani currency will recover once the country receives the $3 billion loan package from Saudi Arabia. However, the final outcome disappointed the economic experts and the currency dealers when the value of the local currency remained extremely volatile in December.

Nevertheless, in the open market the Pakistani rupee on Wednesday resuscitated itself and traded at Rs180.50. It fell to an all-time low of Rs180.70 on December 14.

Here are the open market rates of major currencies on December 15, 2021

Currency  Buying  Selling 
USD  180.00 180.50 
Saudi Riyal  47.30  47.80 
UAE Dirham  49.40  50.70 
UK Pound  235.20  237.80 
Euro  199.60  202.00 
Japanese Yan  1.54  1.56 
AUD  125.30  127.30 
CAD  137.40  139.40 
Chinese Yuan  27.00  28.00 

The rupee has been under immense pressure amid Pakistan’s widening trade deficit.

According to the official figures shared by the PM’s aide on trade and commerce Abdul Razzak Dawood, Pakistan’s trade deficit ballooned to $20.74b in the first five months of the Fiscal Year 2021-22. The imports grew by 72% and the deficit stood at $5.10b in November – the highest trade deficit recorded in a single month.

Data suggests that the situation is likely to remain unchanged, Pakistan has been exporting items worth $100 million while importing goods worth $260 million every day.

The government, on the other hand, has been considering a number of measures, including introducing more duties on luxury items, to reduce imports.

Malik Bostan, chairman of the Forex Association, said that importers are buying dollars to open the letter of credit, due to which the value is rising in the interbank market and impacting the open market.

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