ISLAMABAD: The US dollar is consistently losing value against rupee in the past few days amid positive news about the resumption of IMF loan and disbursement of $2.3 billion loan by Chinese banks.
On Wednesday (June 29), the dollar fell below Rs 205 and it was being traded around 204.75 in the inter-bank. A week ago, the dollar-rupee exchange rate was fluctuating around Rs 212. However, from June 23, the value of dollar started declining when the government signed an agreement with a consortium of Chinese banks and received $2.3 billion on the following day, June 24.
According to the Forex Association of Pakistan, on Wednesday the greenback depreciated by Rs1.25 against the previous day’s close of Rs 206, closing at Rs204.75 on Wednesday.
The capital market analysts are attributing the international currency’s fall to the possibility of the International Monetary Fund (IMF) releasing two combined tranches of around $1.85 billion instead of the initially expected single tranche of around $1bn while Pakistan govt had already received $2.3 billion loan from a consortium of Chinese banks last week.
On Tuesday, Pakistan received the Memorandum of Economic and Fiscal Policies (MEFP) from the IMF for the combined seventh and eighth reviews of its $6 billion loan programme with Pakistan.
The MEFP contains certain prior actions that would be necessary for implementation before the IMF board takes up Pakistan’s case for approval and the subsequent disbursement funds.
According to the MEFP, Pakistan will have to take at least two more “prior actions” to secure the two combined tranches by the end of July or early August.
