PKR’s losing streak to dollar ends on SBP measures

PKR’s losing streak to dollar ends on SBP measures

KARACHI: A losing streak of Pak Rupee (PKR) for the past five days decline in value against the dollar during the last week ended on Monday as the local unit recovered 44 paisas in interbank foreign exchange market.

The rupee ended Rs175.29 to the dollar from last Friday’s closing of Rs175.73 in the interbank foreign exchange market.

Currency dealers attributed the recovery in the value of the local unit to measures taken by the State Bank of Pakistan (SBP) to support exchange rate.

The dollar made a non-stop gain during the last week. This gain resulted in a fall in rupee value to the record low of Rs175.73 on November 12, 2021, in the interbank foreign exchange market.

The SBP on Sunday, November 14, 2021, decided to increase the average Cash Reserve Requirement (CRR), to be maintained during a period of two weeks by scheduled banks, from 5 percent to 6 percent and minimum CRR to be maintained each day from 3 percent to 4 percent.

CRR is the amount of money that banks are required to keep with the State Bank of Pakistan and is applicable on demand liabilities and time liabilities with the tenor of less than a year.

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