January 25, 2019 (MLN): The Pakistani Rupee (PKR) appreciated by 23 paisa against greenback, following the news on reception of $2 billion in total, in the name of financial support from United Arab Emirates and Saudi Arabia.
The interbank rate at yesterday’s closing was PKR 138.88 per USD, while today the currency appreciated to PKR 138.65/70 before falling back to 138.80/85 at present.
While technically this should have led to a greater appreciation in PKR, the State Bank of Pakistan (SBP) cannot allow that, given that the government still has to approach the International Monetary Fund (IMF) for further assistance.
Last eve, Pakistan received $1 billion from UAE as the first installment of a $3 billion loan approved. According to an SBP spokesperson, the remaining amount will be transacted in two further installments.
Meanwhile, Saudi Arabia transacted the final tranche of the $3 Billion it promised.
Pakistan will be paying 3 percent to Saudi Arabia and 3.18 percent to the UAE for these loans.
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