In the interbank market at the start of today’s trading session, the Pakistani rupee increased by Rs. 4.83, further strengthening its position versus the US dollar.
Around 10:30 a.m., intraday trading in the local currency was taking place at Rs. 268.50.
The market anticipated that the current negotiations between the government and the International Monetary Fund (IMF) would result in a favorable ending, which helped the Pakistani rupee claw back against the dollar on Wednesday.
According to the State Bank of Pakistan (SBP), the rupee gained 2.95 or 1.08% versus the dollar to settle at Rs. 273.33.
The dollar has lost 8.7 rupees overall this week in the interbank market.
Good News for Rupee
Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha termed it a “good day for Pakistan’s economy”.
“The main reason behind [rupee’s appreciation] is the staff-level agreement between Pakistan and IMF drawing closer, with sources claiming that the talks went successful,” said Paracha.
The currency dealer claimed that the exporters who had held payments began encashment and the inflow of remittances from abroad Pakistanis had also started as other factors that caused the rupee to appreciate in the interbank market.
“The economy will be better in the coming days and foreign direct investments will also be received,” predicted Zafar Paracha.
According to Saad Ali, a capital market analyst, the rupee’s increase was caused by a rise in market optimism about economic stability brought on by news of Qatar’s investments in state-owned assets.
He concurred that the local currency had gained ground as a result of reports that IMF negotiations had ended successfully.
The draught MEFP, or Memorandum of Economic and Financial Policies, is anticipated by the Pakistani authorities from the IMF today.
Due to ongoing disagreements between the IMF and Pakistani side on the need for external finance and losses in the electricity sector, the draft memorandum’s delivery was delayed.
Today marks the end of the nine review’s projected completion period. A staff-level agreement took a long time to reach even after receiving the draught MEFP document and nine tables, keeping in mind the most recent evaluations conducted by the Pakistani side with the IMF under the Extended Fund Facility (EFF), which is still in effect.
However, the Pakistani authorities claim that the IMF mission has changed its working method and will now finalize the deal before sharing the MEFP with Pakistan.
“There is a broad consensus on the reform actions and measures. The Mission chief also called on the finance minister and briefed him about the talks,” a statement by Finance Ministry said.
It stated that the Mission was assembling everything and would complete the MEFP.
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