Rupee has ended with a gain of 11 paisas against the dollar on Friday amid foreign inflows received from Saudi Arabia and United Arab Emirates (UAE).
The Pakistani Rupee experienced a notable gain of 11 paisas against the US Dollar on Friday, closing at Rs138.78 in the interbank foreign exchange market. Dealers attribute this positive trend to inflows from Saudi Arabia and the United Arab Emirates (UAE), which injected $2 billion into Pakistan’s foreign exchange reserves.
The interbank foreign exchange market saw the Pakistani Rupee open within a range of Rs138.90 and Rs138.93. Throughout the trading day, the Rupee recorded a high of Rs138.90 and a low of Rs138.76 before closing at Rs138.78. This marks a significant improvement from the previous day’s close of Rs138.89.
The financial assistance received from Saudi Arabia and the UAE, totaling $2 billion, is aimed at strengthening Pakistan’s foreign exchange reserves. This injection of funds is crucial for addressing economic challenges and maintaining stability in the country’s currency.
In the open market, the positive momentum continued, with the exchange rate easing further. The buying and selling of the US Dollar in the open market recorded at Rs138.70 and Rs139.20, respectively. This represents a favorable shift from the previous day’s close of Rs138.80/Rs139.30 in the cash-free market.
The influx of funds from Saudi Arabia and the UAE has provided a much-needed boost to Pakistan’s foreign exchange reserves, helping alleviate pressures on the balance of payments. The financial assistance is expected to contribute to the country’s ability to meet international financial obligations and strengthen its economic position.
The positive movement in the exchange rate is seen as a reflection of increased confidence in the Pakistani Rupee, driven by external financial support and the ongoing efforts to stabilize the country’s economic conditions. The collaboration with key allies, particularly Saudi Arabia and the UAE, underscores the significance of international partnerships in addressing economic challenges.
While the immediate impact is positive, economic experts emphasize the need for sustained efforts and comprehensive reforms to ensure long-term stability and growth. Pakistan continues to navigate a complex economic landscape, and the strategic injection of funds is just one aspect of a broader strategy to strengthen the nation’s financial resilience.
The central role of the State Bank of Pakistan (SBP) in managing these funds and implementing effective monetary policies is crucial. The SBP’s oversight ensures that the funds are utilized optimally to address economic challenges and foster sustained growth.
As Pakistan moves forward, the collaboration with key allies, responsible financial management, and ongoing economic reforms will play a pivotal role in shaping the trajectory of the country’s economy. The positive movement of the Pakistani Rupee against the US Dollar is a testament to the positive impact of external financial support and the collective efforts to build a stronger and more resilient economic foundation.
