Further rupee devaluation expected, remittance growth to remain confined – survey by Ismail Iqbal Securities

October 23, 2018 (MLN): A recently conducted survey by Ismail Iqbal Securities has shown that worker’s remittances in upcoming months will not grow as strongly as needed in the short term, due to common people’s expectation of further rupee devaluation.

The survey which was carried out on 87 participants in total, has concluded that majority of people expect rupee to devalue to PKR 140 per USD by December 2018 and to PKR 145 per USD by June 2019.

According to the research note written by Head of Research at Ismail Iqbal Securities, Ms. Shumaila Badar, “Remittances could post the much needed growth in the coming months if expectations of PKR devaluation go down, or PKR does in fact devalue to the level expected by the majority of people.”

Meanwhile, she also highlighted the fact that strong growth in remittances is needed to ameliorate the current account deficit crisis.

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