The US dollar continues to record new notes on Tuesday because it rises to RS212 against local currencies during morning trading in the interbank market.According to the Forex Association of Pakistan (FAP), Rupees depreciated more than RS2 to reach the lowest of all time RS212 to the dollar from the closing of RS209.96 on Monday. Yesterday, Greenback was valued by RS1.21 which was sharp – a trend that lasted for more than a week now.
According to Mettis Global-Portal Financial Data and Web-Rupee-Based Analysis has caused large losses of RS6.4 for five consecutive sessions last week.Comal Mansoor, head of research at Tresmark, told Dawn.com that it seemed that the country now relied upon fully on the IMF bailout.
“There is some support for Rupees around level 211 at this time, but we see the depreciation of the rupees gradually every day until then the IMF staff level agreement is signed,” he said.The IMF Loan Facility, Meanwhile, Has Been Stalled since Early April as Negotiations with the International Money Lender Remain Inclusive, with the Lender Earlier Expressing Reservations Over Fuel and Energy Subsidies Introduced by the Previous upcoming fiscal year.
Pakistan has signed the funding facility extended $ 6 billion with the IMF in July 2019, but the funds stopped disbursement of around $ 3 billion when the government had previously denied its commitment and announced fuel and energy subsidies Yesterday, Minister of Finance Miftah Ismail stated the hope that the agreement with the IMF for the revival of the expanded Fund Facility (EFF) would be achieved “in one or two days”.
Before its optimism, a Dawn report, quoting a diplomatic source, said the United States had agreed to help Pakistan negotiate an agreement with the IMF.Previously, the media report had claimed that Islamabad “sought Washington’s support” to update the expanded funding facilities (EFF) with the IMF. As the largest shareholder, the US has a major influence on IMF decision making.Deinter foreign exchange reserves ‘put pressure’Chairman of FAP Malik Bostan blamed a foreign exchange reserves who were running low to “put pressure” on the rupee.
“After a long time, foreign exchange reserves have fallen to one digit, which has been worried about the market,” he said.According to SBP, Pakistani reserves have dropped by $ 234 million to close at exactly below $ 15 billion as a whole. The central bank in this reserves is only under $ 9 billion.Second, Bostan added, the demand for high dollars due to the upcoming Hajj season. “More than 400,000 Pakistani people will go for the pilgrimage this year and buy dollars. This has a negative impact on local currencies.”
Rumors stop LCSPreviously, a Fajar report said that the currency market was gripped by uncertainty and rumors that the bank had stopped opening the Letters of Credit (LCS)However, such a situation was rejected by the central bank. “Bank Negara does not stop banks to make import payments. Even today, around $ 200 million import payments have been executed, “said SBP Spokesman Abid Qamar.
Meanwhile, SBP has required previous approval before opening LCS or contract registration for certain types of imports such as cars (CKD), cellphones and certain types of engine. But this instruction was issued on May 20 and not today, he said.On May 20, SBP issued a circular after the federal government’s decision to ban the import of luxury and unimportant goods. The decision was intended to consume less dollars while saving the economy from import inflation. So far, state import bills have crossed $ 70 billion in the coming year.
