Exchange rate gap
ISLAMABAD: On Friday, the US dollar further shocked the people in the country as its exchange rate gap in the inter-bank and open market widened to Rs 25.
So far, it is the highest-ever gap in trading of the greenback in inter-bank and open markets in Pakistan.
The US dollar set a new record on Friday and hit 330 rupees in open market trading for the first time. However, in inter-bank trading, the dollar-rupee parity fluctuated around 206 rupees till 12:40 Noon.
The record-high gap in the trading of the greenback negates the benchmark set by the IMF that allows a 4% increase.
At present, the dollar-rupee exchange rate gap in both markets is around 8% which is disappointing for everyone in the country except those minting money.
As the caretaker government is helpless to do anything to contain the unbridled flight of the US dollar, the greenback is hitting a new record every day.
Notably, a consistent growth in the value of the dollar will lead to frequent hikes in the tariffs of electricity, gas, petrol prices, and imported items.
Debt repayment wipes out $81 million of the SBP’s reserves last week
Meanwhile,
The foreign exchange reserves of the State Bank of Pakistan (SBP) further fell by $81 million WoW to $7.85 billion during the week ended on August 25. The SBP reported the foreign exchange reserves’ latest data today.
Similarly, the country’s total reserves decreased by $77.3 million or 0.58% WoW to $13.17 billion. The reserves held by commercial banks rose by $3.9m or 0.07% WoW to $5.32bn.
The reserves with the SBP are at $7.849 billion and $5.321 billion reserves are with the commercial bank as of August 25, 2023.
Total national reserves are $13.171 billion during this period. Last week the SBP’s reserves fell by $81 million on account of debt repayment, said the central bank.
