Karachi, August 16, 2024 – The Pakistani Rupee gained 16 paisas against the US dollar on Friday, reflecting a positive turn in the country’s economic outlook due to an improvement in foreign exchange reserves.
The Rupee ended the day at PKR 278.54 per dollar, up from the previous day’s closing rate of PKR 278.70 in the interbank foreign exchange market. This appreciation was welcomed by market participants as a sign of stabilization in the currency’s value amidst ongoing economic challenges.
Currency experts attributed this modest but encouraging gain to the recent improvement in Pakistan’s foreign exchange reserves. According to data released by the State Bank of Pakistan (SBP), the country’s forex reserves saw a significant uptick, climbing by $173 million to reach $14.65 billion for the week ending August 9, 2024. This marks a clear improvement from the $14.472 billion recorded on August 2, 2024.
The SBP’s official reserves, which are a critical component of the overall forex reserves, also showed a notable increase. The central bank’s reserves rose by $119 million, bringing the total to $9.272 billion, compared to $9.153 billion the previous week. This rise in reserves is a positive signal for the economy, indicating better management of external accounts and a potential easing of pressure on the Rupee.
In addition to the increase in reserves, experts noted that the Rupee’s appreciation was also supported by improved inflows of export receipts and remittances. These inflows play a crucial role in bolstering the country’s forex reserves, helping to stabilize the currency in the face of external pressures.
However, experts cautioned that while the rise in Rupee value is a positive development, challenges remain. In particular, they pointed to ongoing concerns over import payments, which continue to exert downward pressure on the currency. The balance between inflows from exports and remittances, and outflows for imports, will be crucial in determining the Rupee’s future trajectory.
Overall, the increase in Pakistan’s forex reserves and the corresponding rise in the Rupee’s value provide some relief to the economy, offering hope for greater stability in the currency market in the coming weeks.
