KARACHI: The dollar’s value seems to have collapsed even as the International Monetary Fund’s (IMF) stand-by arrangement’s $3 billion inflows have improved significantly.
The State Bank of Pakistan (SBP) on Friday reported the closing price of the dollar at Rs 277.59 on the interbank basis, up by Rs 1.13 from the previous day’s closing.
flow from IMF, Saudi Arabia as well as United Arab Emirates Although sentiment has changed in the early days of the week, the dollar’s value on Friday signaled a return to dollar dominance.
SBP’s foreign exchange reserves increased by $4.2 billion due to the new investment, taking the country’s total reserves to $8.7 billion.
The improvement, which strengthened the local currency for a few days, could not last even a week. The market felt the government’s commitment to the IMF for a free exchange rate.
In the general market, the dollar rose by Rs 1.50 from the previous day. Exchange companies said the dollar closed at Rs 281, but they remained light in trade due to lackluster demand.
Posted on July 15, 2023 in Dawn