September 21, 2023 (MLN): The Pakistani rupee (PKR) continued its ascent for 12 straight sessions, appreciating by 1.1 rupees against the US dollar in Thursday's interbank session to settle at PKR 292.78 per USD, compared to the previous session's closing of PKR 293.88 per USD.
The currency saw an intraday high (bid) of 292.8 and a low (ask) of 292.7.
In the open market, the local unit gained 3 rupees against USD as the Exchange Companies quoted the dollar at 293 for buying and 296 for selling, compared to the previous closing of 296 for buying and 299.5 for selling.
The ongoing crackdown against speculators, hoarders, and smugglers to restrict illegal dollar outflows is effectively strengthening the PKR against the USD.
This crackdown has also exposed various bank staff members who colluded with these hoarders to store large amounts of dollars, which were subsequently used for hawala/hundi transactions, Malik Bostan Chairman of Exchange Companies Association of Pakistan (ECAP) told Mettis Link News.
According to the Chairman, this positive trend is expected to extend if the crackdown against the smuggling of dollars continues.
“In the near future, it is expected that the PKR may reach 250 against the greenback,” he added.
Moreover, exchange companies used to transfer $5 million per day, but due to improved transparency this has now improved to $15m per day.
Improved process, coupled with stringent measures against dollar smuggling, is expected to enhance the inflow of remittances to $2.2 billion, the Chairman remarked.
It is pertinent to note that workers' remittances dropped by 23.74% YoY to $2.09 billion in August.
The State Bank of Pakistan (SBP) has also introduced certain reforms to consolidate and transform various types of exchange companies into a single category with a well-defined mandate and higher capital requirements.
These reforms also apply to the banks actively engaged in foreign exchange business, requiring them to establish wholly owned ECs to cater to the legitimate foreign exchange needs of the general public.
In accordance with these guidelines of the Central Bank, certain banks including MCB Bank Limited (PSX: MCB), Meezan Bank Limited (PSX: MEBL), and United Bank Limited (PSX: UBL), have decided to establish their own exchange company.
In the open market, Exchange Companies quoted the dollar at 293 for buying and 296 for selling.
In comparison to major currencies, PKR gained 2.31 rupees against the Euro, closing at 311.99 compared to the previous value of 314.29.
The British Pound became cheaper by 3.17 rupees closing at 360.236 compared to 363.402 from a day ago.
The Swiss franc saw losses of 4.79 rupees, closing at 322.66 compared to 327.45 from the previous session.
Against the Japanese Yen, PKR gained 0.84 paisa, closing at 1.976 versus 1.98 a day ago.
The Chinese Yuan lost 18.78 paisa, closing at 40.082 against 40.27 from the previous session.
The Saudi Riyal closed at 78.0558 with a loss of 28.8 paisa from its value of 78.34 a day ago.
The U.A.E Dirham decreased in value by 30.05 paisa from 80.01 a day ago to 79.71.
During the current financial year, PKR has depreciated against the Dollar by 6.79 rupees or 2.32%. While the current calendar year has seen PKR depreciate by 66.35 rupees or 22.66%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 14 bps to 22.69% and 22.94%.
Performance Summary
| Currency | Sep 21, 2023 | Sep 20, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day % | 7 Day % | 1 Month % | MTD % | FYTD % | CYTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 292.7795 | 293.8834 | 1.1039 | 6.2275 | -6.7890 | -66.3486 | 0.38 | 1.77 | 2.13 | 4.36 | -2.32 | -22.66 |
| EUR | 311.9859 | 314.2936 | 2.3077 | 14.4102 | 0.9449 | -70.6784 | 0.74 | 2.53 | 4.62 | 6.64 | 0.30 | -22.65 |
| GBP | 360.2359 | 363.4015 | 3.1656 | 22.1044 | 3.9014 | -87.1602 | 0.88 | 3.30 | 6.14 | 7.70 | 1.08 | -24.20 |
| CHF | 322.6576 | 327.4467 | 4.7891 | 18.0135 | -2.9008 | -77.6290 | 1.48 | 3.33 | 5.58 | 7.59 | -0.90 | -24.06 |
| JPY | 1.9758 | 1.9842 | 0.0084 | 0.0766 | 0.0165 | -0.2622 | 0.43 | 2.39 | 3.88 | 6.05 | 0.84 | -13.27 |
| SAR | 78.0558 | 78.3438 | 0.2880 | 1.6592 | -1.8018 | -17.8508 | 0.37 | 1.77 | 2.13 | 4.36 | -2.31 | -22.87 |
| AED | 79.7135 | 80.0140 | 0.3005 | 1.6921 | -1.8517 | -18.0611 | 0.38 | 1.77 | 2.12 | 4.35 | -2.32 | -22.66 |
| CNY | 40.0815 | 40.2693 | 0.1878 | 0.9154 | -0.4118 | -7.5158 | 0.47 | 2.17 | 2.28 | 4.57 | -1.03 | -18.75 |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 217.7919 | 307.0996 | 89.3077 | -25.61 | 4.89 | 11-Oct-22 | 05-Sep-23 | 345 | 16 |
| EUR | 211.2799 | 332.7005 | 121.4206 | -32.28 | 6.64 | 11-Oct-22 | 31-Aug-23 | 345 | 21 |
| GBP | 240.0284 | 387.9723 | 147.9439 | -33.37 | 7.70 | 11-Oct-22 | 31-Aug-23 | 345 | 21 |
| CHF | 217.6396 | 347.1630 | 129.5234 | -32.55 | 7.59 | 11-Oct-22 | 31-Aug-23 | 345 | 21 |
| JPY | 1.4676 | 2.2178 | 0.7502 | -25.72 | 12.25 | 21-Oct-22 | 11-May-23 | 335 | 133 |
| SAR | 57.9311 | 81.8703 | 23.9392 | -25.78 | 4.89 | 11-Oct-22 | 05-Sep-23 | 345 | 16 |
| AED | 59.2946 | 83.6089 | 24.3143 | -25.62 | 4.89 | 11-Oct-22 | 05-Sep-23 | 345 | 16 |
| CNY | 30.0713 | 43.0908 | 13.0195 | -24.97 | 7.51 | 25-Oct-22 | 11-May-23 | 331 | 133 |
Copyright Mettis Link News
Posted on: 2023-09-21T16:22:17+05:00
