The Pakistani rupee hit an all-time low against the US dollar on Thursday, only days after Islamabad agreed to a $6 billion bailout with the International Monetary Fund (IMF) to help the country’s faltering economy.
According to foreign currency traders, the value of the dollar increased by 6.50 Rupees (Rs) to a record high of Rs 148 in open and interbank markets.
US Dollar Attain all-time High Versus the Pakistani rupee
The most recent devaluation is thought to be the consequence of a major IMF requirement that Pakistan implement a market-determined currency rate free of government intervention.
According to Malik Bostan, chairman of the Pakistan Forex Association, financial markets reacted unfavourably to the IMF provision amid predictions of additional devaluation during the last two days, during which the currency fell by Rs 9 against the dollar.
“To satisfy the IMF demand, the administration purposefully depreciated the rupee against the dollar,” he told Anadolu Agency.
He emphasised that the rupee plummeted by over 7% by lunchtime, after trading at Rs 141-142 to the dollar earlier in the day, amid increasing worries of more inflation and price rises in vital goods.
Pakistan’s foreign reserves are now estimated to be approximately $16 billion.
The current account deficit is anticipated to persist, and the currency parity is expected to worsen,” he said.
Tariq went on to say that the rupee’s slide was aided by the instability in Afghanistan, as well as increased commodities costs on the international market.
Following the International Monetary Fund’s (IMF) planned assessment later this month, the expert anticipates the currency to stabilize.