Intraday Report: PKR gains 20 paisa per USD on inflows worth $500 from AIIB

November 29, 2022 (MLN): Pakistani rupee (PKR) has gained 20 paisa against the greenback in the interbank market, after surfacing up the news of $500 million inflows from AIIB, compared to the previous close of PKR 223.95 per USD.  

The local unit was quoted at PKR 223.85/224.05 [1:22 PST] with the trades being reported at 223.75 per USD while in the open market, PKR is being traded at 228.75/231 per USD.

The federal government of Pakistan on Tuesday received $500 million from Asian Infrastructure Investment Bank (AIIB) as indicated by the Governor of the State Bank of Pakistan (SBP) earlier.

The funds have been deposited with the central bank which will augment the country's foreign exchange reserves, a statement published by the Ministry of Finance on Twitter.

It is pertinent to mention that stability in the currency market since the previous few sessions were primarily attributed to the expected inflows from AIIB along with a policy rate hike of 100 bps to 16% by the central bank. 

Meanwhile, the measures taken by the government in the form of import payments restrictions, opening of letters of Credit (LCs), and carrying limits of foreign currency on travelers have also helped PKR to hold its ground.

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