National Assembly’s Standing Committee had earlier called the relevant Central Bank and Ministry of Finance heads to offer explanations for Rupee Depreciation in interbank market. In a meeting held yesterday, Mr. Tariq Bajwa informed the Committee that Rupee depreciation/appreciation is subject to market factors and said SBP has no other plans other than to let Rupee adjust in the interbank market.
Rupee has depreciated more than 8 percent since July, after the Central Bank removed support from under the local currency. “The Rupee is at its fair value”, said Mr. Tariq Bajwa while briefing the media.
Commenting on the future of Currency, he said that the State Bank does not expect any more depreciation in the local currency in near future, “Currency value reduces as per market risk forces”.
Recently, the State Bank has let the Rupee slide in interbank market after Government was under extreme pressure from international and national financial institutions to adjust the rate. However, after the adjustment, many were of opinion that IMF Mission was the reason behind policy change amongst numerous other reasons.
Furthermore, he said that country has Forex Reserves worth of 14 billion dollars which are enough. He also warned that there’s no need for alarm as “external payments for the year 2018 are not in any danger”.
Many analysts fear a bailout would become the only option for the economy in coming months if external account pressures mount. Mr. Bajwa said there’s no reason to panic, “All Foreign Due payments will be cleared in time and accordingly, Current Account will rise but would be kept in control”.
Quashing any rumors of another bond issue in future, “During fiscal year, about 11 to 12 billion dollars will be our requirement”. Towards achieving this end, “Government has sold Euro and Sukkuk Bonds successfully”. He said that Pakistan “won’t be selling any further foreign exchange bonds”.