March 27, 2023 (MLN): After showing resilience in the previous two sessions, the Pakistani rupee (PKR) on Monday gave up on the continued delay in much awaited IMF tranche and political noise.
The local unit has depreciated by 38 paisa against the US dollar in today's interbank session as the currency settled the trade at PKR 283.58 per USD compared to the previous session's close of PKR 283.2 per USD.
Throughout today’s session, the local unit traded in a band of 55 paisa, showing an intraday high bid of 283.8 and low offer of 283.6 while in the open market, PKR was traded at 282.5/285.8 per USD.
On Sunday, Finance Minister Ishaq Dar during a press briefing stated that Pakistan is anticipating its friendly nations to fulfill their commitments, which will help in finalizing the agreement with the IMF and revive the country's economy.
In addition, the State Bank of Pakistan (SBP) declared on Friday that it has eliminated the Cash Margin Requirement (CMR) for imports.
Experts suggest that this decision has been made to restart the IMF program and secure a loan tranche of $1.2 billion, which will aid in increasing the central bank's foreign exchange reserves, presently standing at $4.6bn.
Alternatively, the currency gained 27 paisa against the Pound Sterling as the day's closing quote stood at PKR 347.38 per GBP, while the previous session closed at PKR 347.65 per GBP.
Similarly, PKR's value strengthened by 4 paisa against EUR which closed at PKR 305.16 at the interbank today.
In FYTD, PKR lost 78.73 rupees or 27.76%, while it plummeted by 57.14 rupees or 20.15% against the USD in CYTD. On the other hand, within the last seven sessions, the local unit moved down by 0.13%, as per data compiled by Mettis Global.
On another note, within the money market, the central bank conducted an Open Market Operation (OMO), and Shariah-compliant Mudarabah OMO today, in which it cumulatively injected a total of Rs1.71 trillion into the market, from which Rs1.6tr injected into the market for 74-day at 20.15% rate of return.
Moreover, SBP also conducted Shariah-compliant Mudarabah OMO today, in which it injected Rs107bn into the market at a 20.15% rate of return for 74-day.
The overnight repo rate towards the close of the session was 19.75%/20%, whereas the 1 week rate was 19.68%/19.78%.
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Posted on: 2023-03-27T15:23:13+05:00