SBP’s weighted average customer exchange rates on April 17, 2023

The State Bank of Pakistan (SBP) released official foreign exchange rates for April 17, 2023, based on the weighted average rates quoted by commercial banks. These rates serve as a benchmark for currency conversion and are crucial for importers, exporters, and individuals engaged in foreign exchange transactions.

The SBP publishes these rates to ensure transparency in the interbank market and guide commercial banks and financial institutions. The central bank reviews and compiles the rates daily to reflect actual market conditions.

These exchange rates directly influence inflation, import costs, and the broader monetary policy outlook. The SBP closely monitors currency fluctuations as part of its broader strategy to maintain monetary stability and ensure that the foreign exchange market operates in an orderly manner.

Exchange rates are also a key factor in determining the SBP’s policy rates and interest rate direction. With inflationary pressures and external financing needs influencing the monetary policy landscape, any significant shifts in exchange rates may prompt the SBP to adjust its benchmark rates accordingly.

The following table shows the buying and selling rates of various foreign currencies in Pakistani Rupees (PKR):

These rates are a vital tool used by the SBP to manage foreign exchange liquidity and economic stability. Any sharp divergence in currency values could lead the SBP to intervene through monetary tools or adjustments in discount rates. As such, exchange rates remain tightly linked with the SBP’s overall policy framework and macroeconomic targets.

The SBP may also revise its rates policy depending on global economic shifts, capital flows, or external debt servicing requirements in the future.