SBP terms PKR depreciation a feature of market determined exchange rate system

News Image

MG News | July 19, 2022 at 11:20 PM GMT+05:00

0:00

July 19, 2022 (MLN): The State Bank of Pakistan (SBP) on Tuesday termed the recent depreciation of the Pakistani rupee (PKR) a feature of a market-determined exchange rate system.

While taking to its official Twitter handle, the central bank said, “The recent movement in the Rupee is a feature of a market-determined exchange rate system.”

Under this system, the current account position, relevant news items, and domestic uncertainty together determine daily currency fluctuations, it said.

In a series of Tweets, the central bank explained the reason for PKR’s free fall. “Recent Rupee depreciation against the US dollar is also in large part a global phenomenon,” it noted.

Globally, the US dollar has surged by 12% in the last 6 months to a 20-year high, as the Fed has aggressively raised interest rates in response to rising inflation.

Like most advanced and emerging market currencies across the world, the Rupee has depreciated against the US dollar since December 2021. It has depreciated by 18% over this period, SBP further explained.

“In real effective terms—i.e. against a basket of currencies in which Pakistan trades & adjusting for inflation—depreciation in the Rupee since Dec 21 has only been 3%,” it added.

According to SBP, this is a better measure of the strength and competitiveness of a currency than the US dollar rate.

It is pertinent to mention that since the coalition government has taken a charge of the country, the local unit has dropped by around 38 rupees. In CYTD, the local unit plummeted by Rs45.47 or 20.49% against the USD while it registered a decline of 7.72% against the greenback in MTD.

During the last 52 weeks, PKR lost 27.37% against the greenback while reaching its lowest at 221.99 on July 19, 2022, and the highest of 161.22 on July 26, 2021, as per data compiled by Mettis Global.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 135,939.87
307.74M
-0.41%
-562.67
ALLSHR 84,600.38
877.08M
-0.56%
-479.52
KSE30 41,373.68
101.15M
-0.43%
-178.94
KMI30 191,069.98
82.45M
-1.17%
-2260.79
KMIALLSHR 55,738.07
422.01M
-1.03%
-577.24
BKTi 38,489.75
45.79M
-0.02%
-8.33
OGTi 27,788.15
6.87M
-1.24%
-350.24
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 117,840.00 118,465.00
117,475.00
1100.00
0.94%
BRENT CRUDE 69.02 69.06
68.89
0.31
0.45%
RICHARDS BAY COAL MONTHLY 96.50 96.50
96.50
0.50
0.52%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.25
-2.05
-1.92%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.93 66.97
66.73
0.41
0.62%
SUGAR #11 WORLD 16.56 16.61
16.25
0.26
1.60%

Chart of the Day


Latest News
July 16, 2025 at 06:18 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 15, 2025 at 05:46 PM GMT+05:00

Labubu Mania drives Pop Mart’s profit surge


July 15, 2025 at 05:22 PM GMT+05:00

Big industry output rises 2.29% in May



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg