Karachi, October 13, 2023 – The US dollar continued its downward spiral, weakening for the 27th consecutive session against the Pakistani Rupee (PKR) and concluding at PKR 277.62 on Friday in the interbank foreign exchange market.
The rupee, which hit a historic low of PKR 307.10 to the dollar on September 5, 2023, has demonstrated remarkable resilience since that point, never again depreciating and instead appreciating by PKR 29.48 or 9.6 percent against the greenback during this period.
READ MORE: Pakistani Rupee Achieves 26-Session Winning Streak, Ends at PKR 278.58 Against the Dollar
On October 13, 2023, the rupee gained 96 paisas against the dollar compared to the previous day’s closing rate of PKR 278.58 in the interbank foreign exchange market.
This exceptional performance takes on added significance considering the recent surge in Pakistan’s foreign exchange reserves. According to official data released on Thursday by the State Bank of Pakistan (SBP), there was a notable weekly increase of $31 million in the country’s foreign exchange reserves.
The boost elevated the SBP’s official foreign exchange reserves to $7.647 billion for the week ending on October 6, 2023, in stark contrast to the $4.616 billion reported the previous week, ending on September 28, 2023.
READ MORE: Rupee Remains Unbeatable Against Dollar for 25th Straight Session; Ends at PKR 279.51
In contrast, the overall foreign exchange reserves of Pakistan, which include both SBP’s holdings and those of commercial banks, remained unchanged at $13.03 billion compared to the preceding week.
The sustained strength of the PKR can be attributed to a series of proactive administrative measures aimed at stabilizing the exchange rate. These measures include a crackdown on currency smuggling and hoarding, effectively curtailing speculative trading in the currency market.
READ MORE: Rupee Bulldozes Dollar by 8.66% Since Falling to Historic Low
The State Bank of Pakistan’s dedication to this cause has been further emphasized by the revocation of licenses of several exchange companies engaged in illegal forex transactions.
Furthermore, experts suggest that the PKR’s resilience is closely tied to expectations of external financial support from friendly nations, such as China and Saudi Arabia, as well as from multilateral lenders, including the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
While declining foreign exchange reserves continue to pose challenges, Pakistan’s proactive approach to bolster its currency and seek external financial assistance underscores its commitment to maintaining economic stability amidst a volatile global financial landscape. The trajectory of the Pakistani rupee remains under close scrutiny, with both internal and external factors playing pivotal roles in shaping its performance.
READ MORE: Pakistani Rupee Reaches Record 23rd Straight Gain Against Dollar, Closes at PKR 281.65
This sustained appreciation of the rupee against the dollar signifies a significant achievement for Pakistan’s economy, fostering hope for continued progress and stability in the future. As Pakistan navigates these challenging economic times, the world watches with great interest, eager to see how the nation’s financial strategy unfolds.
