On April 20, 2023, the Pakistani Rupee (PKR) appreciated by 42 paisas against the US dollar in the interbank foreign exchange market, ending at PKR 283.47.
This marks a significant improvement from the historic low of PKR 288.42 to the dollar on April 11, 2023.
Experts attribute the stability of the rupee to the easing demand for the US dollar due to the upcoming Eid holidays and inflows from corporate and import payments. However, they caution that this recent appreciation may not have a lasting impact, as Pakistan continues to face challenges in managing its foreign exchange reserves and stabilizing its currency.
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The decline in remittances and depleting foreign exchange reserves are concerns for experts, who stress the need for swift measures to stabilize the currency and attract more foreign investment. Despite these challenges, recent positive developments have helped to alleviate concerns about the country’s financial stability.
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Assurance from the International Monetary Fund (IMF) regarding Pakistan’s ability to pay back its loans, commitments from Saudi Arabia and the UAE to fund Pakistan, and the ease of import and corporate payments ahead of the Eid holidays have contributed to the appreciation of the PKR.
READ MORE: PKR slips by 31 paisas against dollar to start week in Interbank
IMF Managing Director Kristalina Georgieva recently announced that Pakistan won’t default and that, with the implementation of what has been agreed upon by Pakistani authorities, the current IMF program can be completed successfully. While the recent appreciation of the PKR is a positive sign for the country’s economic stability, experts warn that swift measures are still needed to stabilize the currency and attract more foreign investment for sustained growth.
READ MORE: Rupee ends at PKR 284.40 to dollar in interbank market
In conclusion, the appreciation of the PKR against the US dollar on April 20, 2023, is a positive development for Pakistan’s economic stability. However, the country’s challenges in managing its foreign exchange reserves and stabilizing its currency remain significant. Swift measures are needed to address these challenges and attract more foreign investment for sustained economic growth.