Karachi, August 28, 2023 – The Pakistani Rupee (PKR) experienced a new intraday low against the US dollar on Monday, reaching PKR 301.75 during trading.
This marks a depreciation of 75 paisas compared to the previous close of PKR 301 in the interbank foreign exchange market.
READ MORE: Rupee Expected to Continue Slide Against Dollar in Week Starting August 28
Financial experts and currency analysts have been closely monitoring this concerning trend, attributing the persistent decline of the rupee to the country’s dwindling foreign exchange reserves. Just one day before this historic low, the State Bank of Pakistan (SBP) reported a substantial decrease in Pakistan’s foreign exchange reserves.
READ MORE: Pakistani Rupee Hits All-Time Low at PKR 301 to Dollar in Interbank Market Closing
According to the SBP’s report, foreign exchange reserves plummeted by $131 million during the week ending August 18, 2023. This decline represents a stark contrast to the situation in August 2021 when Pakistan held a robust reserve of $27.2 billion. By August 18, 2023, these reserves had fallen to a mere $13.248 billion, down from $13.379 billion on August 11, 2023.
READ MORE: US Dollar Makes Historic High at PKR 300.22 in Interbank Closing
The drastic reduction in foreign exchange reserves highlights the persistent economic challenges faced by Pakistan, raising serious concerns about the nation’s ability to maintain a stable economic foundation. The rapid depreciation of the rupee, coupled with diminishing foreign exchange reserves, has triggered uncertainty in financial markets and heightened worries about inflation.
Economic analysts are closely monitoring these developments, emphasizing the need for swift and effective measures to stabilize the Pakistani economy and restore confidence among investors and the public.
