International Business Weekly
  • Home
  • News
  • Politics
  • Business
  • National
  • Culture
  • Lifestyle
  • Sports
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • National
  • Culture
  • Lifestyle
  • Sports
No Result
View All Result
International Business Weekly
No Result
View All Result
Home National

Pakistani Rupee Falls After Market Maker Group Removes Currency Cap

Brand Post by Brand Post
January 25, 2023
in National
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


A currency trader counts Pakistani Rupee notes as he prepares an exchange of U.S dollars in Islamabad, Pakistan December 11, 2017.
Reuters

The Pakistani rupee fell by 1.2% on Wednesday after foreign exchange companies removed a cap on the currency, saying it was creating “artificial” distortions in the market as the South Asian country struggles to escape a deepening economic crisis.

Pakistan is battling to meet its external financing obligations in the face of rapidly dwindling foreign exchange reserves that are barely enough to cover a month of imports. It is also beset by decades-high inflation which policymakers are trying to curb with massive interest rate hikes.

The rupee was bid at 240.60 to the U.S. dollar and offered at 243 in early trade, the Exchange Companies Association of Pakistan said in a statement, compared with a range of 237.75/240 at the close on Tuesday.

The rupee has depreciated 11.23% against the greenback so far in the current fiscal year 2022-23, which ends on June 30.

The exchange association said late on Tuesday it was lifting the cap on the currency in the interest of the country.

“We have decided that we bring the exchange rate at par what we are supplying to the banks against credit cards,” Secretary General Zafar Paracha said in a statement, adding that level is 255/256 rupees to the dollar.

Before the cap on the rupee was removed, markets eyed three different rates to assess its value — the state bank’s official rate, the one assessed by the foreign exchange companies and the black market rate.

“Though the bank rate for today is yet not been disclosed, we think the dollar rate in banks may fall by up to 5% in few days,” said Mohammed Sohail, chief executive officer at brokerage Topline Securities.

Participants in the stock market think the removal of the cap may be a step towards liberalise the exchange market which will help the country unlock stalled IMF funding, Sohail said.

The International Monetary Fund is yet to approve its ninth review to release $1.1 billion, which was originally due to be disbursed in November last year, but got held up over fiscal consolidation issues.

The IMF has called for fiscal steps to reduce the budget deficit that include subsidy cuts, slashing energy sector debt, levying more taxes to plug the revenue shortfall, and a market-based exchange rate as conditions for releasing the funding.

Pakistan’s Prime Minister Shehbaz Sharif said on Tuesday that his country was willing to discuss all of the IMF’s demands.

(Writing and reporting by Asif Shahzad in Islamabad; Editing by Kim Coghill)



Source link

Tags: CapCurrencyFallsGroupmakermarketPakistaniRemovesRupee
Brand Post

Brand Post

Related Posts

National

Montrealers Shrug Off The Cold To Dance And Party At Igloofest

January 28, 2023
National

What To Know For Bengals vs. Chiefs

January 28, 2023
National

‘Unbearable Distress’: Families Rally For French Held In Iran

January 28, 2023
Next Post

BlockFi Accidentally Reveals $1.2B Assets Tied To Bankman-Fried's FTX And Alameda Research

Porsche Web3 Incursion Cut Short; Halt On NFT Minting Announced Following Flak From Community

EasyJet Hikes Profit Forecast On Demand Boom

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

  • 86.7k Followers

Recommended

Biden Approval Ratings Show Varying Numbers

6 days ago

European Stocks Fall On Earnings Jitters, Rate Hike Worries

3 days ago

Hundreds of Chicks, Birds Killed as Video Shows Tree Housing Nests Being Cut Down to Widen Highway in India, Sparks Outrage

5 months ago

Redacted Affidavit In Trump Home Raid Released

5 months ago

Instagram

    Please install/update and activate JNews Instagram plugin.

Categories

  • Business
  • Culture
  • Lifestyle
  • National
  • News
  • Politics
  • Sports
  • Travel
  • Uncategorized
  • World

Topics

Arrested Attack biden billion china Claims Court Covid Crypto Cup Day Dead Death details Dies Harry Heres Home inflation Killed Man million musk Nuclear Oil Police Prince Report Russia Russian Set Shows South Star Top Trump twitter Ukraine video War WATCH Woman World Year Years
No Result
View All Result

Highlights

‘Avatar’ Pits Movie Theaters Against Netflix

CDC Urges Extra COVID-19 Precautions For Immunocompromised People

Rheinmetall Eyes Boost In Munitions Output, HIMARS Production In Germany – CEO

Gucci Names De Sarno As Creative Director With Task Of Reviving Brand

FTX Founder Bankman-Fried Objects To Tighter Bail, Says Prosecutors ‘Sandbagged’ Him

49ers vs. Eagles Could Draw 50 Million Viewers

Trending

National

Montrealers Shrug Off The Cold To Dance And Party At Igloofest

by Brand Post
January 28, 2023
0

Montreal's Igloofest, sometimes called the coldest festival in the world, draws thousands of people eager to party...

What To Know For Bengals vs. Chiefs

January 28, 2023

‘Unbearable Distress’: Families Rally For French Held In Iran

January 28, 2023

‘Avatar’ Pits Movie Theaters Against Netflix

January 28, 2023

CDC Urges Extra COVID-19 Precautions For Immunocompromised People

January 28, 2023

ABOUT US

International Business Weekly is an American entertainment magazine. We cover business News & feature exclusive interviews with many notable figures

Copyright © 2022 - International Business Weekly

  • About
  • Advertise
  • Careers
  • Contact

No Result
View All Result
  • Home
  • Politics
  • News
  • Business
  • Culture
  • National
  • Sports
  • Lifestyle
  • Travel

Copyright © 2022 - International Business Weekly by Services4Websites