Pakistan rupee plunges against US dollar

Greenback reached to an all-time high in open market
Nov 26, 2021

The value of the US dollar, once again, is on the verge of hitting an all-time high against Pakistani rupee. It rose Friday by 94 paisas in the interbank market.

According to the data shared by the State Bank of Pakistan, the local currency depreciated by 0.27% and the trading session closed at Rs175.46. A day earlier, the central bank reported that the foreign exchange reserves fell 4.1% to their lowest level since June 25, 2021.

On the other hand, in the open market, the dollar was traded at an all-time high of Rs178.30.

On November 19, the SBP reserves fell by $16.3 billion, putting up immense pressure on the Pakistani rupee.

The value of the US dollar reached an all-time high of Rs175.73 in the interbank on November 12.

Here are the open market rates of major currencies on November 26, 2021:

Saudi Riyal46.8047.40
UAE Dirham50.0051.00
UK Pound234.00237.00
Japanese Yan1.521.54
Chinese Yuan27.0028.00

Adnan Sami Sheikh, an economic analyst, said that the rise in imports at the month-end has increased the dollar demand.

Sheikh said that Pakistan has to meet IMF’s conditions and the next tranche of loans is expected in January or February next year. A billion-dollar aid package is yet to be received, after which the pressure on the Pakistani rupee may ease.

Meanwhile, Federal Information and Broadcasting Minister Fawad Chaudhry announced Thursday that a $3b deposit from Saudi Arabia to prop up Pakistan's reserves is expected this week.

Exchange Companies Association Secretary Zafar Paracha said that the value of the US dollar was raised artificially and its value will further drop once the tranche is released by the IMF.

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