ISLAMABAD: Pakistani rupee gained significantly against the US dollar on Monday in the open market in the wake of the roadmap announced by the Finance Ministry and State Bank of Pakistan (SBP) to tackle the ongoing economic crisis in 2022-23.
On Monday (Aug 1), rupee appreciated by 4.50 rupees in the inter-bank during intra-day trading and the value of dollar declined to 243.50.
The sharp recovery in rupee value is also being linked to the central bank’s decision to inject Rs 1,240.75 billion into the money market for 63 days through its open market operation.
In the past four months, the local currency has lost its value by 60 rupees versus US dollar because of the ongoing crisis.
In a joint statement, the Ministry of Finance and the SBP asserted that the country’s problems were temporary, which were being fixed forcefully.
The statement assured that all prior actions for the International Monetary Fund’s (IMF) review were completed and the Executive Board’s meeting for the release of the $1.2 billion loan is expected in a couple of weeks.
The statement also mentioned that macroeconomic policies have been tightened to minimise the current account deficit, which is a major challenge for the government. The SBP and Finance Ministry said that the rupee has been overshot temporarily, but it is expected to appreciate in line with fundamentals over the next few months.
