KARACHI: Pakistani Rupee (PKR) deteriorated against the dollar on Friday due to decline in country’s foreign exchange reserves continued.
The exchange rate recorded a decline of 23 paisas in rupee value to end at PKR 224.94 from previous day’s closing of PKR 224.71 in the interbank foreign exchange market.
READ MORE: PKR ends stable to dollar despite greenback demand for foreign payments
Currency experts said that falling foreign exchange reserves and rising import and corporate payment demand pressured the exchange rate.
They said that in the month of December mostly payments were made for imports. Besides, corporate sector also needs dollars to repatriate their profits and dividends.
The experts said although the central bank was remained vigilant about the exchange rate yet the weak external sector remained a threat to rupee stability.
READ MORE: Rupee softens against dollar to PKR 224.71 in interbank
Pakistan foreign exchange reserves have eased by $12 million to $12.57 billion by week ended December 09, 2022 as against $12.582 billion a week ago i.e. December 02, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $14.658 billion.
READ MORE: PKR steady fall continues against dollar in interbank
Whereas the official foreign exchange reserves of the State Bank also slipped by $15 million to $6.7 billion by week ended December 9, 2022 as compared with $6.715 billion a week ago. The official reserves of the country fell to multi years low to $6.70 billion by week ended December 09, 2022. Previously, the SBP reserves were seen at $7 billion in April 2014.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $13.446 billion.
READ MORE: PKR weakens by 25 paisas to dollar on foreign payment demand
