The interbank market is where banks trade foreign currency with each other to meet the requirements of international trade and other bulk uses. The World Bank and IMF have advised Pakistan to depreciate its currency to improve its balance of trade – but Pakistan’s financial managers have continued to reject the logic. We expect further PKR depreciation following the government decision to approach the IMF for a bailout, the report states. Web Desk. But despite the steep fall in PKR’s value, experts believe the rupee is still overvalued. Moody's points out that around one-third of Pakistan's government debt is denominated in foreign currency, and further rupee depreciation would increase the country's debt burden, which was equivalent to 68% of GDP at the … While equity markets have stabilised on hopes of support from central banks, the rupee could continue to depreciate. However, Pakistan is quite confident about the actions that PTI government has taken against money laundering and terror financing would assist Pakistan in exiting out from … Let's analyse the key factors that can contribute to this possible scenario - ZAWYA KSA Edition Since the United States dollar suspension in 1971 of convertibility of paper currency into any precious metal, Pakistani rupee … The sudden plunges in the value of the rupee cause panic, further compromising the gains. The report goes on to forecast USD-PKR to 140 by end-2018 (previously 130) and 155 by end-2019 (previously 139). The coins and notes are issued and controlled by the central bank, namely State Bank of Pakistan.. Instead by preventing it from falling they have built up many years worth of pressure that they now need to let go all at once. Reaching at the historic level of Rupees 128.75 per dollar this week, Pakistani rupee has fallen down to almost 21% relative to the US Dollar, from December 8 … The Rupee expected to further depreciate around 12 percent by the end of the next fiscal year of 2019. The rupee further lost its value by 64 paisa against the US dollar and hit Rs160.50 in the interbank market at the early trade hours on Tuesday. The Pakistani rupee (Urdu: روپیہ ‎ / ALA-LC: RÅ«piyah; sign: ₨; code: abbreviated as PKR) has been the official currency of Pakistan since 1948. Pressure mounts as foreigners pull out investment amid virus fears The government has devalued the currency from PKR 105 against the dollar on December 8, 2017, to PKR 135 on October 09, 2018, making it 27 per cent weaker. LAHORE - The Pakistani rupee depreciated by Rs0.53 in the interbank. It is expected that Pakistani Rupee will further depreciate by 5% against the dollar in 2018’s second half. The login page will open in a new tab. A research report of Topline Securities said the IMF program will come with specific external, fiscal and monetary measures that are likely to slow gross domestic product growth to about 4 to 4.5 per cent. In the interbank market, the rupee dropped by 7.5 per cent, or Rs9.37, to settle at Rs133.67. This is the fifth round of rupee devaluations since December last year. Analysts say that the rupee will remain under pressure this week and may undergo the sixth round of devaluation as a prerequisite for IMF assistance. NATIONAL. ... but with the support of the State Bank of Pakistan ... there was a lot of pressure on the federal government to depreciate the rupee. The Rupee has already lost ten percent (10%) value against dollar in the first three months of this year. The pressure on the rupee will continue and the central bank will allow it to depreciate further in the coming weeks.” Ahmed Ateeq, head of treasury at Pak Brunei Investment Co. in Karachi The market closed nearly 300 points up on Wednesday as the investors’ concerns over the falling foreign exchange reserves were put to rest by the government’s announcement to approach IFM for a bailout to shore up the falling reserves. Please log in again. © 2020 ProPakistani.PK - All rights reserved. Pakistani rupee further depreciates against US dollar. Another analyst with Alfalah Securities Fahad Irfan sounded the same feeling saying the rupee will depreciate further to PKR 140 against the dollar. The rupee strengthened further against the dollar in the country, while the price of gold declined sharply and the Pakistan stock market remained positive. Let's analyse the key factors that can contribute to this possible scenario - ZAWYA MENA Edition KARACHI (Dunya News) – The Pakistani currency, on the back of deteriorating macroeconomic indicators, continue to lose ground and cumulatively depreciate against the US dollar. Rupee drops further to 158.42 against dollar. 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The Pakistan stock market reacted strongly to the government’s decision to opt for an IMF programme for stabilisation and economic recovery, with the benchmark KSE 100 index recovering 606 points on Tuesday. ... Pakistan did not let the rupee depreciate in … In January 2019, the government raised the maximum retail price of medicines by 9-15% to provide much-needed relief to both the local and multinational drug manufacturers after considerable rupee depreciation in 2018, high cost of utilities and a shortage of raw material supplies. (WebDesk) - The Pakistani rupee has experienced a worst fall ever against US dollar. “We expect that the currency will further depreciate by up to 5 per cent before the country goes to the IMF programme,” Afzal said. Past few weeks now because of rising current account deficit Not Happy international trade and bulk. To this page of rupee devaluations since December last year Muneeb’s Daughter, Gone... 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