KARACHI: At Friday’s close of the interbank foreign currency market, the US dollar surged to Pakistani Rupee (PKR) 218.98.
The currency rate was down 38 paisas from the previous day’s interbank foreign exchange market close of Rs218.60 to conclude at Rs218.98.
READ MORE: Dollar closes down to PKR 218.60 on September 01, 2022
According to currency analysts, the daytime exchange rate was under pressure due to the growing demand for dollars for import payments.
The rupee recovered this week thanks to inflows of $1.16 billion from the International Monetary Fund, which is noteworthy (IMF).
The State Bank of Pakistan (SBP) received the $1.1 billion tranche on August 31, 2022, after the IMF Executive Board on August 29 approved the seventh and eighth reviews for Pakistan.
READ MORE: Dollar slips to PKR 218.75 at interbank closing on August 31, 2022
The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.
The torrential rains and flash floods have inflicted a loss of $10 billion to Pakistan economy.
The devastation will prompt the country to make imports in coming days, especially for agriculture produces.
The rupee also fell due to continuous depletion in foreign exchange reserves of the country.
READ MORE: Dollar falls to PKR 220.12 at interbank closing on August 30, 2022
The foreign exchange (FX) reserves of Pakistan have declined by $119 million to $13.40 billion by week ended August 26, 2022. The foreign exchange reserves of the country were at $13.522 billion by week ended August 19, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.825 billion.
The official foreign exchange reserves of the State Bank witnessed a decline of $113 million to $7.697 billion by week ended August 26, 2022 as against $7.810 billion a week ago.
READ MORE: Dollar strengthens to PKR 221.92 amid political uncertainty
By the week ending August 27, 2021, the central bank’s foreign exchange reserves had reached a new high of $20.146 billion. The SBP’s official reserves have decreased since that time by $12.449 billion.
However, the central bank reported that on August 31, 2022, it had received revenues from the IMF under the Extended Fund Facility (EFF) totaling $1.16 billion (or SDR 894 million), which would be added to the SBP’s foreign exchange reserve position for the week ending September 02, 2022.