During Wednesday’s interbank session, the Pakistani rupee (PKR) showcased notable appreciation against the US dollar, settling at PKR 278.41 per USD. This upward trend marked a gain of 23.06 paisa compared to the previous session’s closing rate of PKR 278.64 per USD. Throughout the day, the currency exhibited an intraday high bid of 278.75 and a low ask of 278.4, reflecting a strong performance in the forex market.
PKR INTERBANK EXCHANGE RATES ON MARCH 20, 2024
| Country (Symbol) | Rate |
|---|---|
| United States (USD) | 278.40 |
| Eurozone (EUR) | 302.35 |
| United Kingdom (GBP) | 353.80 |
| Japan (JPY) | 1.8576 |
| United Arab Emirates (AED) | 75.81 |
| Saudi Arabia (SAR) | 74.24 |
| Australia (AUD) | 181.68 |
| Canada (CAD) | 204.81 |
IMF AGREEMENT AND ECONOMIC OUTLOOK
In a significant development, discussions between International Monetary Fund (IMF) staff and Pakistani authorities have culminated in a staff-level agreement concerning the second and final review under Pakistan’s Stand-By Arrangement. Pending approval from the IMF’s Executive Board, Pakistan stands to gain access to SDR 828 million, approximately equivalent to $1.1 billion. Moreover, the Pakistani government has expressed keen interest in a successor medium-term Fund-supported program aimed at addressing fiscal and external sustainability concerns, fostering economic recovery, and fostering robust, sustainable, and inclusive growth.
FOCUS ON ECONOMIC STRENGTHENING
The forthcoming discussions are poised to prioritize various key objectives, including bolstering public finances through fiscal consolidation and expanding the tax base, particularly in sectors with inadequate taxation, to fortify debt sustainability and facilitate increased spending on development and social assistance initiatives. The IMF board underscores the commitment of the State Bank of Pakistan to maintaining a prudent monetary policy geared towards curbing inflation and ensuring exchange rate flexibility, alongside enhancing transparency in foreign exchange market operations.
CURRENCY PERFORMANCE AGAINST GLOBAL MARKETS
In comparison to major currencies:
- PKR experienced marginal decline against the Euro, closing at 302.35.
- The British Pound witnessed a slight appreciation, closing at 353.8.
- The Swiss Franc recorded losses, closing at 312.85.
- PKR gained ground against the Japanese Yen, closing at 1.8376.
- The Chinese Yuan observed a slight decrease, closing at 38.67.
- Other notable fluctuations include the Saudi Riyal and the U.A.E Dirham.
YEARLY PERFORMANCE AND MARKET INDICATORS
Throughout the current financial year, PKR has demonstrated a commendable performance against the US Dollar, witnessing an increase of 7.58 rupees or 2.72%. Similarly, within the calendar year, PKR appreciated by 3.45 rupees or 1.24%, indicating significant shifts in market dynamics and investor sentiment.
MONEY MARKET
Talking about the money market, benchmark 6-month Karachi Interbank Bid and Offer rates experienced a minor decline by 2 bps to 21.18% and 21.43%, respectively.
