Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.
The Pakistani Rupee maintained its firm position against the US Dollar on Friday, driven by a lack of robust demand for imports and corporate payments.
(more…)The Pakistani Rupee concluded Thursday’s trading session without significant changes against the US Dollar, maintaining a stable position despite initial gains.
(more…)KARACHI: The Pak Rupee gained 4 paisas against dollar in early day trading on Thursday after the reports of significant fall in import bill in March 2019.
The dollar is being traded at Rs141.34 to the dollar in interbank foreign exchange market. The foreign currency market was ended at Rs141.38 to the dollar.
The import bill has been declined by 21 percent in March 2019 to $4.15 billion as compared with $5.25 billion in March 2017.
The total import bill during first nine months of current fiscal year fell by 8 percent to $40.75 billion as compared with $44.28 billion in July – March 2017/2018.
KARACHI: State Bank of Pakistan (SBP) raised an amount of Rs415.72 billion through sale of Market Treasury Bills (MTBs) at an auction held on Wednesday.
The SBP received bids for three- and six months securities at realized value of Rs2,730 billion at face value of Rs2,799 billion. The central bank did not receive bids for 12-month maturities.
The bids were mainly received in 3-moth MTBs at realized amount of Rs2,729 billion at face value of Rs2,798.74 billion. The central bank received bids for six-month treasury papers of Rs758 million at face value of Rs800 million.
The SBP accepted 3-month maturities at realized value of Rs415.58 billion at face value of Rs426.103 billion. The cut-off yield was at 11 percent.
The central bank accepted bids in six-month maturities of Rs142.14 million at face value of Rs150 million. The cut-off yield was at 11.0899 percent.
The SBP raised the funds above the auction target of Rs350 billion.
The cut-off yield is higher than the key policy rate of 10.75 percent.
Experts said that the banks were anticipating further hike in interest rate in upcoming policy. The expectation of increase in interest rates showed the interest of banks in short-term maturities.
KARACHI: The Pak Rupee made slight gain against dollar on Wednesday amid lower demand for import and corporate payments.
The rupee ended Rs141.38 to the dollar from previous day’s closing of Rs141.39 in interbank foreign exchange market.
The interbank foreign exchange market was initiated in the range of Rs141.39 and 141.40.
The market recorded day high of Rs141.39 and low of Rs141.37 and closed at Rs141.38.
In open market the exchange rate was ended with 20 paisas gain in rupee value.
The buying and selling of dollar was recorded at Rs142.00/Rs142.50 in from previous day’s closing of Rs142.30/Rs142.70 in cash ready market.
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Rupee ends firmer in rang bound trading
KARACHI: The Pak Rupee ended firmer against dollar on Tuesday in a range bound trading activity.
The rupee ended Rs141.38 to the dollar from previous day’s closing of Rs141.39 in interbank foreign exchange market.
The interbank foreign exchange market was initiated in the range of Rs141.39 and Rs141.40.
The market recorded a high of Rs141.40 and low of Rs141.38 and closed at Rs141.38.
The rupee however gained in open market against the greenback.
The buying and selling of dollar was ended at Rs142.30/Rs142.70 from previous day’s closing of Rs142.50/Rs142.50 in cash ready market.
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Rupee ends down by nine paisas
ISLAMABAD: The State Bank of Pakistan (SBP) to be given operation and institutional independence for bringing discipline in money market.
According to ‘Medium-Term Economic Framework’ launched by Finance Minister Asad Umar on Monday, the government is considering giving the SBP greater operation and institutional independence to bring greater discipline in money market and exchange rate regimes.
It said that the State Bank Act would be amended to further strengthen the autonomy of SBP and clarify its objectives and functions.
“Specifically, the government, in consultation with SBP and other stakeholders, will finalize proposals to facilitate implementation of flexible inflation targeting as envisage in SBP Vision 2020,” it added.
The existing exchange rate arrangements and possible limits of government borrowing from SBP will also be clarified in line with prioritizing price stability as an objective of monetary policy.
The framework said that the exchange rate is one of the most important prices and is determined by underlying economic fundamentals.
These fundamentals ensure that it would adjust to its equilibrium value over the long run.
As mentioned earlier, Pakistan’s approach over the last two years to manage the exchange rate was structurally flawed, as it focused more on the overriding desire to avoid unnecessary volatility in the foreign exchange market and avoid fiscal cost of exchange rate adjustment, even when it was needed.
“This led to persistent overvaluations of rupee contributing to a massive increase in trade and current account deficits; which was the central to the macroeconomic instability faced by the country today.”
The recent pressures on external fronts are a manifestation of the misaligned exchange rate for the past two years.
Against this background, the principal idea now is to enshrine an exchange rate policy which enhances competitive of Pakistani exports, by avoiding the persistent overvaluation of rupee.
Accordingly, the Pakistani rupee has depreciated around 33.4 percent since November 2017. The depreciation has moved the exchange rate to a level, which is more reflective of economy’s medium-term needs and market conditions while at the same time minimizing disorderly fluctuations.
The near-term goal of this policy is to move towards an exchange rate regime which SOEs not allow overvaluation of rupee on persistent basis.
KARACHI: The Pak Rupee ended down by nine paisas against dollar on Monday after gaining value earlier in the day.
The rupee ended Rs141.39 to the dollar from last Friday’s closing of Rs141.30 in interbank foreign exchange market.
The interbank foreign exchange was initiated in the range of Rs141.10 and Rs141.20. The market recorded day high of Rs141.40 and low of Rs141.20 and closed at Rs141.39.
The exchange rate in open market was remained unchanged.
The buying and selling of dollar was recorded at Rs142.50/Rs142.80 the same last Saturday’s level in cash free market.
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Rupee gains 10 paisas against dollar
KARACHI: The Pak Rupee gained five paisas against dollar in early trade on Monday owing to monitoring by authorities for import payments.
The dollar is being traded at Rs141.25 in interbank foreign exchange market. The foreign currency market was ended at Rs141.30 to the dollar on last Friday.
Last week the State Bank of Pakistan (SBP) said that large payments had been made and the local currency would recover against the greenback.
The SBP told this at a meeting with members of Forex Association of Pakistan (FAP). Since then the rupee gained 25 paisas till today morning.
Currency experts however said that the latest World Bank report issued on Sunday April 07, 2019, pointed out difficulties to Pakistan economy and forecast lower growth during two fiscal years.
The experts said that the weak economic indicators may exert pressure on the local currency in coming months.
KARACHI: The Pak Rupee gained 20 paisas in open market on Saturday owing to monitoring launched by exchange companies after meeting with State Bank of Pakistan.
The buying and selling of dollar was recorded at Rs142.30/Rs142.80 from previous day’s ending of Rs142.50/Rs142.50 in cash ready market.
The representatives of Forex Association of Pakistan (FAP) held meetings during last two days with State Bank of Pakistan to control the higher demand of dollar in open market.
In the last day meeting the FAP decided that it would not entertain non genuine buyers of dollars and would monitor the trading in the open market.