Karachi, December 30, 2023 – The Exchange Companies Association of Pakistan (ECAP) has released data revealing a massive fall in the Pakistani Rupee (PKR) against major foreign currencies throughout 2023.
The snapshot of the currency’s movement, comparing rates on December 29, 2023, with the same date in the previous year, paints a concerning picture of depreciation.
According to the report, the interbank foreign exchange market saw a notable 24.32 percent decline in the rupee’s value against the US Dollar (USD), closing at PKR 281.60 on December 29, 2023, compared to PKR 226.50 at the end of December 29, 2022.
In the open market, the rupee experienced a 20.17 percent plunge against the USD, reaching PKR 280.23 from the previous PKR 233.20.
The decline continued against other major currencies:
• Euro (EUR): The rupee depreciated by 17.92 percent, ending at PKR 307.07, compared to the previous year’s PKR 260.40.
• UK Pound (GBP): A gain of 19.70 percent was recorded, closing at PKR 354.33, up from PKR 296 a year ago.
• Saudi Riyal (SAR): An increase of 14.35 percent saw the rupee end at PKR 74.33, compared to the previous year’s PKR 65.00.
• UAE Dirham (AED): The local currency slipped by 11.10 percent, ending at PKR 75.88.
• Australian Dollar (AUD): A 15.24 percent decline resulted in the rupee closing at PKR 189, down from the previous year’s level of PKR 164.
• Canadian Dollar (CAD): A gain of 16.39 percent was observed, closing the year at PKR 209.50, compared to PKR 180 the previous year.
The reasons behind the depreciation are multifaceted and may include factors such as economic challenges, global market trends, and inflationary pressures. This significant fall in the value of the PKR against major foreign currencies may have implications for both businesses and consumers, necessitating a careful examination of economic policies to address the concerns surrounding currency devaluation.
As the year comes to a close, the financial landscape poses challenges for stakeholders, and close monitoring of the currency’s performance will be crucial in formulating strategies for the year ahead. The Exchange Companies Association of Pakistan’s data sheds light on the current state of the Pakistani Rupee and calls for a nuanced approach to navigate the economic complexities in the coming year.
