PKR slides by 83 paisa per USD in early trade

June 6, 2022 (MLN): Owing to the delay in the fresh inflow of foreign exchange, the Pakistani rupee (PKR) has further lost its value by 83 paisa in early trade compared to 197.92 per USD in the previous session close in the interbank market.

The rupee was quoted at 198.72/ 198.97 (10:23 PST) against the greenback with trades reported at 198.75 per USD. 

PKR’s ride on the choppy slope will remain to continue until the budget announcement and IMF’s approval of the loan.

According to Asad Rizvi, the former Treasury Head at Manhattan, “Moody's on Thursday downgraded the outlook from stable to negative due to external financing factor, the market reacted that saw PKR dipping. Closure of market in the Middle East also added pressure.”

While choppy conditions remain intact until BUDGET & IMF approve the loan, he added.

Though the current status of foreign exchange reserves is quite depressing, the reserves will see a notable improvement in days to come as Pakistan will shortly receive $2.3bn from China.

According to Federal Minister for Finance and Revenue, the terms and conditions for refinancing of around $2.3bn deposit by Chinese banks have been agreed.

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