After initial euphoria at the reopening of the International Monetary Fund (IMF) programme subsided, the US dollar surged over the 210-rupee level on Friday in the interbank market.
Throughout the day, the interbank exchange rate for the dollar was Rs211.
According to State Bank of Pakistan data, the value of the rupee improved somewhat against the dollar the day after Pakistan and the Fund achieved an agreement at the staff level, with the market ending at 209.80.
A final decision on whether or not to release the $1.17 billion loan to Islamabad has yet to be made by the IMF’s Executive Board.
Market participants, according to Adnan Agar, Director of AA Commodities, do not think that Pakistan would be able to make ends meet with an IMF loan tranche of $1.17 billion.
“Investors are keeping a close eye on worldwide oil prices in the hopes that a drop in global markets will help salvage the country’s economy,” he added.
The expert did add that it would be beneficial for Pakistan if oil prices dropped to $60-$70 per barrel on the international market, but that this looks unlikely since Brent crude is falling due to forecasts of recession throughout the world. Oil prices are expected to recover as this situation stabilises.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
