The rupee continued to depreciate against the dollar and the interbank rupee depreciated by another rupee 72 paise. According to data releas...
The rupee continued to depreciate against the dollar and the interbank rupee depreciated by another rupee 72 paise.
According to data released by the Forex Association of Pakistan (FAP), the local currency was trading at Rs 229.9 paise per dollar at 12 noon on the interbank, showing a decline of 0.75 percent for the rupee.
Also read: Record improvement in rupee value, dollar becomes cheaper by 9 rupees 59 paisa in interbank
Meanwhile, the dollar is selling at 234 rupees in the open market.
Exchange Companies Association of Pakistan General Secretary Zafar Paracha said that the expected increase in the import bill as a result of the floods has led to the depreciation of the rupee.
He said that one of the main reasons for the decline in the value of the rupee is that friendly countries who promised to invest after receiving money from the International Monetary Fund (IMF) have not followed through on their promises.
Zafar Paracha said that the reason for the delay in the fulfillment of the promises is the political situation of Pakistan, corruption and the past record regarding the payment of money. There would be an increase of up to 20% but it did not happen.
Read more: Dollar hits record high of Rs 237 after rising by Rs 4
He said that we have received more than one billion dollars from the IMF which is insufficient.
The General Secretary of Exchange Companies Association of Pakistan said that the country needs to make payments of 40 billion dollars in the current financial year, while the government had earlier said that they have made all arrangements to meet all the financial requirements, but Now it seems that the government is changing its statements.
It should be remembered that Finance Minister Miftah Ismail appeared worried during the press conference and said that the pressure on the rupee remains.
Zafar Paracha further said that 'It seems that we have delayed saving the country from default while now the country is moving towards default again. .
Also read: Dollar more expensive, hits a high of Rs 232
Komal Mansoor, head of research at Tracemark, says that imports into the country are temporarily suspended, but there is a problem with cash payments due to the smuggling of dollars into Afghanistan.
Due to the difference between interbank and open market, customers are benefiting from withdrawing US dollars in international currency account and they are preferring to sell dollars in open market, due to very low interest rate in international account. These customers are not preferring deposits.
Saad Bin Naseer, director of Mets Global, said that due to pressure on the rupee, banks have stopped opening letters of credit for non-essential imports.
Read more: Economy is in the right direction, negative reviews are wrong, Acting Governor State Bank
He pointed out that the appreciation of the dollar has caused a supply shock and floods have washed away the cotton crop, which will put a heavy burden on the current account.
He suggested that the government arrange payments for exporters so that dollars are converted into rupees on the day the export consignment is dispatched.
He added that if such a policy is introduced, the government can bring back 5 to 6 billion dollars.
Also read: Dollar more expensive, hits a high of Rs 232
The rupee has depreciated against the dollar since September 2, after depreciating from 9.2 paise to 228.18 paise last week.
According to financial data and analytics portal Meets Global, the rupee has depreciated by Rs 26.37 per cent over the past 52 weeks, hitting a record low of Rs 239.94 on July 28.
No comments
Thanks