January 2, 2020 (MLN): The Pakistani Rupee is expected to remain stable during the larger part of CY2020, with some volatility expected by the end of the year.
According to a research report compiled by Topline Securities, the local currency may not be subjected to extreme volatilities, unlike the previous year, due to a rise in the forex reserves of the State Bank of Pakistan. However, it might lose some value by the end of the year, with the exchange rate hovering at Rs. 162 per USD.
It is imperative to mention that the reduction in Current Account Deficit, higher investment in T-Bills and foreign inflows from funding agencies such as IMF as well as other friendly nations helped a great deal in bringing up Central Bank’s reserves.
The report further suggests that the exports from the country are likely to increase by 7%, whereas the imports are expected to flutter by 16% during the year 2020. The remittances, on the other hand, are likely to remain stable.
With regards to the bond market, the report states that the foreign investment in T-Bills is expected to touch $2 billion mark by June, 2020. However, there is a possibility of this investment being pulled out, considering that the State Bank might lower the interest rates. Nonetheless, Pakistan’s equity market would soar higher if that happens!
