KARACHI: The Pakistani Rupee (PKR) has appreciated against the US dollar by 81 paisas on Tuesday, April 18, 2023 in interbank foreign exchange market.
This appreciation comes as a result of the realization of inflows and reduced demand for the US dollar due to the upcoming Eid holidays.
The exchange rate ended at PKR 283.90 to the dollar on April 18, 2023, from last day’s closing of PKR 284.71. According to currency experts, the ease of import and corporate payments ahead of the Eid holidays has reduced the demand for the US dollar, contributing to the appreciation of the PKR.
In addition to this, the realization of inflows related to assurance from the International Monetary Fund (IMF) has also helped the rupee to make gains. However, experts warn that the recent appreciation of the PKR may not have a lasting impact.
The country continues to face challenges in managing its foreign exchange reserves and stabilizing the value of its currency. The decline in remittances and depleting foreign exchange reserves are matters of concern for experts who believe swift measures are needed to stabilize the currency and attract more foreign investment.
However, recent positive sentiment regarding the IMF program and commitments by Saudi Arabia and the UAE to fund Pakistan have helped to alleviate concerns about the country’s financial stability and contributed to the appreciation of the PKR. IMF Managing Director Kristalina Georgieva recently announced that Pakistan won’t default, and with the implementation of what has been agreed by the Pakistani authorities, the current program can be completed successfully.
While the recent appreciation of the PKR is a positive sign for the country’s economic stability, the challenges faced by the country in managing its foreign exchange reserves and stabilizing the value of its currency cannot be ignored. Swift measures are needed to stabilize the currency and attract more foreign investment to boost the country’s economic growth.