The ruble, which recovered by four percent last week, continued to appreciate on Monday.
According to the State Bank of Pakistan (SBP), the local currency closed at 213.98 rupees per dollar. dollar, up Rs 1.51 or 0.71%.
Forex Association of Chairman of Pakistan (FAP) Malik Bostan attributed the exchange rate of the rupee rise to the letter from the International Monetary Fund (IMF) of intentions and reports of help from friendly countries, especially Saudi Arabia.
He said market payment from the IMF is expected to be received soon which will increase the country’s foreign exchange reserves.
The chairman of the FAP said that the dollar real price was between 190 and 200, but speculators “artificially increased it because of economic issues and risk of default”. He added, however, that dollar will come back to my real price soon.
Mattis Global Director Saad bin Nasir said the local currency rose as dollars flowed into the country, adding that more inflow was expected.
exporters, who kept their dollars abroad, were also importing them into Pakistan earlier because the dollar was rapidly depreciating, he added.
Nasir said there was “pressure” as exporters approached government and other bodies to encourage them to stabilize the exchange rate since they were facing losses. “But it will always be like this. AT best the suggestion is that dollars should be converted into rupees on the same day that the export [consignment] sent and government and banks should sign memorandum of understanding in it is an attitude that will put an end to uncertainty.”
He also said that the rupee will continue to strengthen and gain in coming days if the political situation remains stable.
“This week start was really good. Positive news comes from all sides, because of what are the feelings changed”, Association of Exchange Companies of This was stated by Secretary General of Pakistan (Ecap) Zafar Paracha.
He added because because of positive developments, exporters who they used to hold dollars, they wanted to sell them, but importers were waiting for the dollar will continue to fall.
Paracha said there were reports that Saudi Arabia over $3 billion loan and provide oil on deferred payments pending receipt of the IMF tranche soon that’s why PKR was recovering.
Overseas Pakistanis and listed companies have played a very important role. role in rupees recovery, he said. ecap secretary general called for incentives and discounts provided overseas Pakistanis and exchange companies together with designating them as “export industry”.
Chapter of Tresmark Komal Mansoor research has shown that market was optimistic that the IMF tranche would be received by the end of month. “Weak demand of the US dollar, further backed by a fall in oil prices, stability in political views and easing of Inflationary pressure in the US also lending support to [exchange rate]”.