October 6, 2022 (MLN): Dollar in the interbank was trading around Rs221.85 as of 1:30 pm and Rs223 in the open market, according to the data compiled by Mettis Global.
Several factors are contributing to the rupee’s appreciation including the Asian Development Bank announcement to lend $2.5 billion in flood relief and BRACE support, funding from other donors and countries for food relief and prospects of a lower current account deficit owing to the 31%YoY reduction in the trade deficit for September.
The Ministry of Finance ministry and the State Bank of Pakistan are also investigating banks for booking exorbitant profits on the sale of dollar by charging a premium.
At around 1:30 pm, the rupee was trading at Rs221.85, an appreciation of Rs2.05 or 0.92% against the greenback, during intraday trading.
Forex Association of Pakistan Chairman Malik Bostan while speaking to MG Link News said that Pakistan is likely to receive $5-$6 billion from friendly countries which will help the government to the losses of $40bn caused by climate change.
He added that the floods have caused food shortages in the country and many crops were damaged. Therefore, to fulfill the necessities, the government imported various food items such as tomatoes, onions, etc. and they also reduced import duties, which is one of the reasons behind the rupee depreciation in past.
However, now the country has imported enough food to sustain its population and the government is also taking strong actions to bring the rupee back to its actual value.
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