PKR continues losing spree

May 22, 2023 (MLN): The Pakistani rupee (PKR) continued losing ground against the greenback on Monday as the currency depreciated by almost 1.68 rupees per US dollar in the interbank market and over six rupees in the open market. 

The dollar was being quoted at 287.03/286.53 (1:16 PM) when compared to the previous close of 285.82  against the US dollar while in the open market, it is being traded at PKR302/306 per USD. 

Today's appreciation of the dollar in the open market is primarily due to increasing demand from the Hajj pilgrims as the Hajj flights have been started from Sunday.

In addition to the default noise, and political instability, Ishaq Dar's latest statement wherein he asked banks to facilitate export-oriented sectors to open LCs for raw material to restore the industry’s supply line without any reference to SBP, has increased the demand for dollars in the market.

The local unit is already in the doldrums mainly on the back of the longer-than-expected delay. There were rumors that the delay in signing the IMF’s agreement was because the IMF wants assurance from the Ministry of Finance that the funds will not be utilized for political purposes. 

However, in a recent clarification statement by the Ministry of Finance, it was stated that IMF never raised any such concern with the government nor any funds can be utilized for any purpose without the approval of the Parliament through the budget.

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