September 22, 2023 (MLN): The Pakistani rupee (PKR) sustained its upward trajectory throughout the week, appreciating by 5.09 rupees against the US dollar in the interbank session to settle at PKR 291.76 per USD, compared to the previous week's closing of PKR 296.85 per USD.

In Friday's trading session, the currency gained 1.02 rupees, compared to the previous session's closing of PKR 292.78 per USD.

The local unit saw an intraday high (bid) of 291.9 and a low (ask) of 291.8.

In the open market, the local unit gained 1 rupee against USD as the Exchange Companies quoted the dollar at 292 for buying and 295 for selling, compared to the previous closing of 293 for buying and 2296 for selling.

During the week, PKR strengthened further amid the ongoing crackdown against speculators, hoarders, and smugglers to restrict illegal dollar outflows.

This crackdown has also exposed various bank staff members who colluded with these hoarders to store large amounts of dollars, which were subsequently used for hawala/hundi transactions, Malik Bostan Chairman of Exchange Companies Association of Pakistan (ECAP) told Mettis Link News.

According to the Chairman, this positive trend is expected to extend if the crackdown against the smuggling of dollars continues.

“In the near future, it is expected that the PKR may reach 250 against the greenback,” he added.

Moreover, exchange companies used to transfer $5 million per day, but due to improved transparency this has now improved to $15m per day.

Improved process, coupled with stringent measures against dollar smuggling, is expected to enhance the inflow of remittances to $2.2 billion, the Chairman remarked.

It is pertinent to note that workers' remittances dropped by 23.74% YoY to $2.09 billion in August.

The State Bank of Pakistan (SBP) has also introduced certain reforms to consolidate and transform various types of exchange companies into a single category with a well-defined mandate and higher capital requirements.

These reforms also apply to the banks actively engaged in foreign exchange business, requiring them to establish wholly owned ECs to cater to the legitimate foreign exchange needs of the general public.

In accordance with these guidelines of the Central Bank, certain banks including 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 1.38 rupees against the Euro, closing at 310.61 compared to the previous value of 311.99.

The British Pound became cheaper by 2.32 rupees closing at 357.92 compared to 360.24 from a day ago.

The Swiss franc saw losses of 44.56 paisa, closing at 322.21 compared to 322.66 from the previous session.

Against the Japanese Yen, PKR gained 0.89 paisa, closing at 1.967 versus 1.976 a day ago.

The Chinese Yuan lost 11.81 paisa, closing at 39.96 against 40.082 from the previous session.

The Saudi Riyal closed at 77.78 with a loss of 27.41 paisa from its value of 78.06 a day ago.

The U.A.E Dirham decreased in value by 27.58 paisa from 79.71 a day ago to 79.44.

During the current financial year, PKR has depreciated against the Dollar by 5.77 rupees or 1.98%. While the current calendar year has seen PKR depreciate by 65.33 rupees or 22.39%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates were unchanged at 22.69% and 22.94%.

Furthermore, the State Bank of Pakistan (SBP) conducted a reverse repo and Shariah Compliant Modarabah Open Market Operation (OMO) today, in which it injected a total of Rs316.3 billion at the rate of 22.07% into the market through reverse repo OMO. 

While no bids were received for Shariah-compliant Modarabah-based OMO. 

Performance Summary

52 Week Performance

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Posted on: 2023-09-22T16:16:49+05:00