October 16, 2023 (MLN): The Pakistani rupee (PKR) started the week extending its upward trajectory, appreciating by 79 paisa against the US dollar in Monday’s interbank session to settle at PKR 276.83, compared to the previous day’s closing of PKR 277.62 per USD.
The local unit saw an intraday high (bid) of 277.6 and a low (ask) of 276.6.
In the open market, the local unit remained stable as the exchange companies quoted the dollar at 274 for buying and 277 for selling.
It is important to mention that the local unit gained over 5 rupees against the USD in the last week, marking 27 consecutive trading sessions of gains.
The strengthening of the local currency is attributed to the ongoing army-backed crackdown to restrict illegal dollar outflows, along with other administrative measures taken by the government.
Syed Mohammad Shabbar Zaidi, former Chairman of the Federal Board of Revenue (FBR) mentioned in his latest post that he expects the local unit to appreciate to 250 against the greenback by the year-end, following the initiatives being taken by the government.
Economy is very slowly taking a positive turn. $ reducing against Rs. Petrol prices down. It is sorry state that media & public not appreciating economic scene. Politics has always overwhelmed economics in Pakistan. However there has to be a balance. I see $ at 250 by year end.
— SyedShabbarZaidi (@SShabbarZaidi) October 16, 2023
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.
This move, made through a Statutory Regulatory Order (SRO) issued on October 03, was in exercise of the powers conferred by the Imports and Exports (Control) Act, 1950.
Additionally, the FBR has imposed a 10% processing fee on five major categories of Afghan transit commercial goods imported into Afghanistan through Pakistan.
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 five exchange companies of B- Category on Wednesday, underscoring the central bank’s commitment to ensuring compliance with regulatory standards.
This comes in addition to the suspension of four exchange companies in the previous month
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; Habib Metropolitation Bank (PSX: HMB), 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 1.47 rupees against the Euro, closing at 291.62 compared to the previous value of 293.08.
The British Pound became cheaper by 2.16 rupees closing at 337.03 compared to 339.2 from a day ago.
The Swiss franc saw gains of 1.21 paisa, closing at 306.47 compared to 306.46 from the previous session.
Against the Japanese Yen, PKR gained 0.44 paisa, closing at 1.851 versus 1.855 a day ago.
The Chinese Yuan lost 13.22 paisa, closing at 37.8634 against 37.9956 from the previous session.
The Saudi Riyal closed at 73.8 with a loss of 20.95 paisa from its value of 74.01 a day ago.
The U.A.E Dirham decreased in value by 21.5 paisa from 75.583 a day ago to 75.368.
During the current financial year, PKR has appreciated against the Dollar by 9.16 rupees or 3.31%. While the current calendar year has seen PKR depreciate by 50.4 rupees or 18.21%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched up by 5 bps to 22.52% and 22.77%.
Performance Summary
| Currency | Oct 16, 2023 | Oct 13, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 276.8346 | 277.6204 | 0.7858 | 20.0145 | 9.1559 | -50.4037 | 0.28% | 1.74% | 7.23% | 3.94% | 3.31% | -18.21% |
| EUR | 291.6175 | 293.0839 | 1.4664 | 24.7642 | 21.3133 | -50.3100 | 0.50% | 1.65% | 8.49% | 3.71% | 7.31% | -17.25% |
| GBP | 337.0322 | 339.1966 | 2.1644 | 31.9066 | 27.1051 | -63.9565 | 0.64% | 1.76% | 9.47% | 3.81% | 8.04% | -18.98% |
| CHF | 306.4702 | 306.4581 | -0.0121 | 24.8716 | 13.2866 | -61.4416 | 0.00% | 0.95% | 8.12% | 2.01% | 4.34% | -20.05% |
| JPY | 1.851 | 1.8554 | 0.0044 | 0.1577 | 0.1413 | -0.1374 | 0.24% | 2.04% | 8.52% | 4.14% | 7.63% | -7.42% |
| SAR | 73.8029 | 74.0124 | 0.2095 | 5.3368 | 2.4511 | -13.5979 | 0.28% | 1.74% | 7.23% | 3.94% | 3.32% | -18.42% |
| AED | 75.3681 | 75.5831 | 0.2150 | 5.4533 | 2.4937 | -13.7157 | 0.29% | 1.74% | 7.24% | 3.94% | 3.31% | -18.20% |
| CNY | 37.8634 | 37.9956 | 0.1322 | 2.9541 | 1.8063 | -5.2977 | 0.35% | 2.04% | 7.80% | 4.04% | 4.77% | -13.99% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 218.894 | 307.1 | 88.2053 | -20.93% | 10.93% | 17-Oct-22 | 05-Sep-23 | 364 | 41 |
| EUR | 213.4 | 332.701 | 119.3005 | -26.82% | 14.09% | 17-Oct-22 | 31-Aug-23 | 364 | 46 |
| GBP | 246.617 | 387.972 | 141.3551 | -26.83% | 15.11% | 17-Oct-22 | 31-Aug-23 | 364 | 46 |
| CHF | 218.851 | 347.163 | 128.3125 | -28.59% | 13.28% | 17-Oct-22 | 31-Aug-23 | 364 | 46 |
| JPY | 1.4676 | 2.2178 | 0.7502 | -20.71% | 19.82% | 21-Oct-22 | 11-May-23 | 360 | 158 |
| SAR | 58.2553 | 81.8703 | 23.6150 | -21.07% | 10.93% | 17-Oct-22 | 05-Sep-23 | 364 | 41 |
| AED | 59.5955 | 83.6089 | 24.0134 | -20.93% | 10.93% | 17-Oct-22 | 05-Sep-23 | 364 | 41 |
| CNY | 30.0713 | 43.0908 | 13.0195 | -20.58% | 13.81% | 25-Oct-22 | 11-May-23 | 356 | 158 |
Copyright Mettis Link News
Posted on: 2023-10-16T16:57:08+05:00
