PKR rises as country nears IMF deal, up by 97 paisa per USD

February 23, 2023 (MLN): As the country is making progress towards securing a deal with the International Monetary Fund (IMF), the Pakistani rupee (PKR) has appreciated by 97 paisa against the US dollar in the interbank session on Thursday to settle the session PKR 260.93 per USD compared to the previous closing of PKR 261.9 per USD.

Throughout the session, the local unit traded in a band of 1.34 rupees, showing an intraday high bid of 261.59 and low offer of 260.50 while in the open market, PKR was traded at 265.5/268.5 per USD.

This improvement in the PKR-USD exchange rate is indicative of positive developments in Pakistan's economy pertaining to the IMF program, as it signals that the market has increased confidence in the country's ability to repay its debts and meet its financial obligations.

According to the news reports, President Arif Alvi on Thursday granted approval for the Finance Supplementary Bill 2023, as per the provisions of Article 75 of the Constitution of Pakistan.

This important development marks a significant step forward in the country's economic policy and represents a critical milestone in the government's efforts to unlock the IMF program.  

Meanwhile, the State Bank of Pakistan (SBP) is also expected to raise interest rates in an off-cycle review this week, as the country seeks to repair its finances and secure a $1 billion loan from the fund.

In FYTD, PKR lost 56.08 rupees or 21.49%, while it plummeted by 34.5 rupees or 13.22% against the USD in CYTD. On the other hand, within the last seven sessions, the local unit moved up by 1.32%, as per data compiled by Mettis Global.

Meanwhile, the currency gained 2.3 rupees against the Pound Sterling as the day's closing quote stood at PKR 314.71 per GBP, while the previous session closed at PKR 316.98 per GBP.

Similarly, PKR's value strengthened by 2 rupees against EUR which closed at PKR 277 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 17%/17.3%, whereas the 1-week rate was 16.65%/16.75%.

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