October 09, 2023 (MLN): The Pakistani rupee (PKR) appreciated by 1.04 rupees against the US dollar in Monday’s interbank session as the currency settled the trade at PKR 281.65 per USD, compared to the previous session’s closing of PKR 282.69 per USD.
The local unit saw an intraday high (bid) of 282.6 and a low (ask) of 280.84.
In the open market, the local unit gained 5 rupees as exchange companies quoted the dollar at 275 for buying and 278 for selling, compared to the previous closing of 280 for buying and 283 for selling.
Afghan transit trade has an economic loss of around $6 billion for the county, Syed Shabbar Zaidi, former Chairman of the Federal Board of Revenue (FBR) highlighted in a recent interview on live television.
He stated that Afghanistan technically uses Pakistan’s dollars to import the difference of a $6 billion deficit.
He highlighted that this practice effectively results in Afghanistan utilizing Pakistan’s dollars, additionally impacting negatively on the local currency’s exchange rate.
To address the issue of Afghan transit trade, Pakistan’s Ministry of Commerce recently took a decisive step by imposing a ban on 212 items that were previously being imported into Afghanistan via Pakistan under the Afghan transit trade agreement.
Additionally, the FBR has imposed a 10% processing fee on five major categories of Afghan transit commercial goods imported into Afghanistan through Pakistan.
These reforms along with the army-backed crackdown on illegal dollar trades have continued to strengthen the domestic currency against the USD.
Moreover, recent reforms introduced by the State Bank of Pakistan (SBP) to consolidate and transform various types of exchange companies into a single category with a well-defined mandate and higher capital requirements are also enhancing transparency.
To note, SBP suspended the authorization of four exchange companies in September, underscoring the central bank’s commitment to ensuring compliance with regulatory standards.
These reforms also apply to the banks actively engaged in foreign exchange business, mandating them to set up wholly owned ECs to address the legitimate foreign exchange needs of the general public.
Following the guidelines of the central bank, certain banks such as; Bank Al Falah Limited (BAFL), Faysal Bank Limited (PSX: FABL), Allied Bank Limited (PSX: ABL), Bank Al Habib Limited (PSX: BAHL), 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 comparison to major currencies, PKR gained 1.6 rupees against the Euro, closing at 296.44 compared to the previous value of 298.04.
The British Pound became cheaper by 1.79 rupees closing at 342.95 compared to 344.74 from a day ago.
The Swiss franc saw losses of 28.83 paisa, closing at 309.37 compared to 309.66 from the previous session.
Against the Japanese Yen, PKR gained 0.95 paisa, closing at 1.889 versus 1.898 a day ago.
The Chinese Yuan lost 8.01 paisa, closing at 38.6362 against 38.7163 from the previous session.
The Saudi Riyal closed at 75.09 with a loss of 28.44 paisa from its value of 75.37 a day ago.
The U.A.E Dirham decreased in value by 28.12 paisa from 76.964 a day ago to 76.682.
During the current financial year, PKR has appreciated against the Dollar by 4.34 rupees or 1.52%. While the current calendar year has seen PKR depreciate by 55.22 rupees or 19.61%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates were unchanged at 22.55% and 22.8%.
Performance Summary
| Currency | Oct 9, 2023 | Oct 6, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 281.6504 | 282.6871 | 1.0367 | 21.2978 | 4.3401 | -55.2195 | 0.37% | 1.81% | 7.56% | 2.16% | 1.54% | -19.61% |
| EUR | 296.4371 | 298.037 | 1.5999 | 28.0507 | 16.4937 | -55.1296 | 0.54% | 2.18% | 9.46% | 2.03% | 5.56% | -18.60% |
| GBP | 342.9516 | 344.7369 | 1.7853 | 35.5518 | 21.1857 | -69.8759 | 0.52% | 1.91% | 10.37% | 2.01% | 6.18% | -20.37% |
| CHF | 309.37 | 309.6583 | 0.2883 | 30.6774 | 10.3868 | -64.3414 | 0.09% | 1.69% | 9.92% | 1.05% | 3.36% | -20.80% |
| JPY | 1.8887 | 1.8982 | 0.0095 | 0.1665 | 0.1036 | -0.1751 | 0.50% | 1.42% | 8.82% | 2.06% | 5.49% | -9.27% |
| SAR | 75.0868 | 75.3712 | 0.2844 | 5.6821 | 1.1672 | -14.8818 | 0.38% | 1.83% | 7.57% | 2.16% | 1.55% | -19.82% |
| AED | 76.6823 | 76.9635 | 0.2812 | 5.7997 | 1.1795 | -15.0299 | 0.37% | 1.81% | 7.56% | 2.16% | 1.54% | -19.60% |
| CNY | 38.6362 | 38.7163 | 0.0801 | 2.5941 | 1.0335 | -6.0705 | 0.21% | 1.65% | 6.71% | 1.96% | 2.67% | -15.71% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 217.792 | 307.1 | 89.3077 | -22.67% | 9.04% | 11-Oct-22 | 05-Sep-23 | 363 | 34 |
| EUR | 211.28 | 332.701 | 121.4206 | -28.73% | 12.23% | 11-Oct-22 | 31-Aug-23 | 363 | 39 |
| GBP | 240.028 | 387.972 | 147.9439 | -30.01% | 13.13% | 11-Oct-22 | 31-Aug-23 | 363 | 39 |
| CHF | 217.64 | 347.163 | 129.5234 | -29.65% | 12.22% | 11-Oct-22 | 31-Aug-23 | 363 | 39 |
| JPY | 1.4676 | 2.2178 | 0.7502 | -22.30% | 17.42% | 21-Oct-22 | 11-May-23 | 353 | 151 |
| SAR | 57.9311 | 81.8703 | 23.9392 | -22.85% | 9.03% | 11-Oct-22 | 05-Sep-23 | 363 | 34 |
| AED | 59.2946 | 83.6089 | 24.3143 | -22.67% | 9.03% | 11-Oct-22 | 05-Sep-23 | 363 | 34 |
| CNY | 30.0713 | 43.0908 | 13.0195 | -22.17% | 11.53% | 25-Oct-22 | 11-May-23 | 349 | 151 |
Copyright Mettis Link News
Posted on: 2023-10-09T16:17:28+05:00
