Pakistani rupee falls 36% to Saudi Riyal in seven months

Pakistani rupee falls 36% to Saudi Riyal in seven months

KARACHI: The Pakistani Rupee (PKR) has recorded a sharp decline by Rs16.79 or 36 per cent against the Saudi Riyal during the past seven months January – July 2022, according to official data.

According to weighted average customer exchange rates issued by the State Bank of Pakistan (SBP), the selling rate by exchange companies opened at Rs47.08 to the Saudi Riyal on January 04, 2022 [the first trading day of the year] as compared with closing of Rs63.87 to the Saudi Riyal on July 29, 2022.

READ MORE: Pakistani Rupee to Saudi Riyal on July 31, 2022

The rupee recorded a massive decline during the year against a basket of foreign currencies. As the local unit recorded a massive decline of 34.35 per cent against the US dollar in the interbank foreign exchange market.

The US dollar was at Rs178.17 at opening on January 04, 2022 and closed at Rs239.37 on July 29, 2022 in the interbank foreign exchange market.

READ MORE: Pakistani Rupee to Saudi Riyal on July 30, 2022

Experts believed that the downgrade of the rating of Pakistan by three top credit rating agencies deteriorated the outlook of the country. Furthermore, the political conflict further aggravated the situation.

Further the Rupee declined against SAR because of the exchange of currency for pilgrimage to Saudi Arabia. The Hajj began on July 7, 2022, when the SAR closed at Rs55.49.

READ MORE: Pakistani Rupee to Saudi Riyal on July 29, 2022

The rupee also declined against the Saudi Riyal on account of the massive fall of the local currency against the US Dollar after the country has been trapped in foreign exchange reserves shortage.

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