KARACHI – The Pakistani Rupee gained significant ground against the US Dollar, strengthening by 43 paisas on Friday. The surge was attributed to the burgeoning foreign exchange reserves of the country and the optimistic sentiments generated by the recent launch of Roshan Digital Accounts, a financial initiative catering to non-resident Pakistanis (NRPs).
Closing at Rs165.97 to the dollar in the interbank foreign exchange market, the rupee exhibited resilience compared to its previous day’s closing rate of Rs166.40. Financial analysts and currency experts suggest that the uptick in the value of the rupee can be primarily linked to the recent surge in foreign exchange reserves and the successful initiation of the Roshan Digital Accounts platform.
As of the week ending September 4, 2020, Pakistan’s foreign exchange reserves witnessed a notable uptick, reaching $19.961 billion. This marked an increase of $118 million from the previous week when reserves stood at $19.843 billion (week ended August 28, 2020). The State Bank of Pakistan (SBP) played a pivotal role in bolstering the official reserves, which rose by $95 million to $12.808 billion compared to $12.713 billion a week earlier. The SBP attributed this surge to proceeds of $121 million from the Asian Development Bank (ADB).
Parallelly, commercial banks also contributed to the overall surge in foreign reserves, witnessing an increase of $23 million. The foreign exchange reserves held by commercial banks reached $7.153 billion, up from $7.130 billion a week ago.
The launch of the Roshan Digital Accounts for overseas Pakistanis is being viewed as a catalyst for the positive momentum in the forex market. Analysts suggest that the anticipation of substantial inflows of foreign currency, facilitated by the Roshan Digital Account initiative, has created an optimistic outlook for the Pakistani economy.
Roshan Digital Accounts, introduced to facilitate non-resident Pakistanis in managing their financial affairs remotely, has garnered attention and participation from overseas Pakistanis seeking seamless and digital financial services. The initiative, launched by the government, aims to attract foreign remittances, foster investment, and provide NRPs with convenient and secure banking solutions.
The positive movement of the Pakistani Rupee against the US Dollar is being interpreted as a positive indicator of the country’s economic resilience amid global uncertainties. As the Roshan Digital Account platform gains traction and foreign exchange reserves continue to strengthen, experts are hopeful that this trend will contribute to stabilizing the country’s financial landscape and fostering economic growth.
The coming weeks will be crucial in gauging the sustained impact of these developments and their implications for Pakistan’s overall economic trajectory. Market participants and policymakers will closely monitor these trends to make informed decisions in navigating the complex global economic environment.
