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The ruble continues its uptrend against US dollars after the IMF tranche

KARACHI:

United States dollar fell by Rs 1.48 to Rs 217.27. in interbank market on Thursday, after the State Bank of Pakistan received first tranche of $1.6 billion from the International Monetary Fund (IMF).

In addition to the IMF loan, financial help from the UN and others countries for flood sacrifices helped devalue dollar for third day in a row.

Foreign investment during year as well as reduced oil imports at the expense of declining demand in resource sector caused due to ongoing floods also strengthened the local currency against U.S. dollar.

Analysts were also of opinion that global oil prices can decline further, if the US and Iran reach a nuclear agreement and development will benefit Pakistan as the country will be able to accept full advantage of oil supplies from a neighboring country.

Read Stocks fall despite IMF loan renewal

These positive expectations led to a decrease demand for United States dollar in both open market and interbank market.

Two days after the Executive Council of International Monetary Fund (IMF) revived aid program for Pakistan, State Bank of Pakistan (SBP) received revenue of $1.16 billion (equivalent to of SDR 894 million) of global creditor on Wednesday.

The IMF said that Pakistan economy rise to around 3.5%, but average inflation rate estimated at 19.9% ​​- forecasts that were made before the flood destroyed extensive bands of country.

global creditor also approved the increase in loan amount up to $6.5 billion and extended its validity period is until June 2023. original program came to an end next month with half of in amount not used due to failure of PTI government fulfill their obligations.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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