IMF’s policy of barbs with Pakistan pushes USD up again

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KARACHI: June16,2023: The International Monetary Fund (IMF) policy of questioning Islamabad’s every action that it takes to either provide relief to the people of Pakistan like reduction in oil prices or stabilize its currency , USD has started to move up in value against the rupee again.
Other than IMF, the government of Shahbaz Sharif is also facing a homegrown mafia of banks which is resisting any move aimed at appreciation of the rupee.
In the last few days, USD had shown major downward trend in the open market, but there was hardly any fluctuation in the interbank.

This shows banking mafia is not willing to let the rupee appreciate come what may. The commercial banks have their own plans and one of them is to keep ditching the local currency. Since State Bank of Pakistan (SBP) is acting like a mere spectator and has no intention to check as to why the commercial banks are resisting any downward slide of USD.

In open market, USD lost more than 10 rupee in the first three working sessions of the current week, but there was hardly any change in USD value in interbank.
Now IMF spat with Islamabad over its resumption of 9th review, USD moved up in the local currency market on Friday.
In the open market, the rupee-USD parity moved up to Rs 292.00 (buying) and Rs 295.00 (selling) on the last day of the week. On Thursday, US dollar had closed at Rs 291.00 (buying) and Rs 293.00 (selling) respectively.

In interbank, US dollar rate in interbank also moved by and it settled at Rs 287.20 (buying) and Rs 287.34 (selling).
Other major currencies rates in Pakistan as follows. Saudi Riyal is trading at Rs 77.20 (buying) and Rs 78.00 (selling). UAE is trading at Rs 80.20 and Rs 81.00. Euro rate is trading at Rs 316.80 (buying) and Rs 320.00 (selling). Pound Sterling is trading at Rs 366.30 (buying) and 37000 (selling).
AUD rate in local currency market is Rs 196.00 (buying) and Rs 199.00 (selling) respectively. CAD rate today in local market is R 217.00 (buying) and Rs 220.00 (selling). Chinese Yen rate is Rs 45.00 (buying) and Rs 47.00 (selling) respectively.

Afghan currency is performing even better than the rupee. Afghan rupee is trading at Rs 3.30 (buying) and Rs 3.70 (selling) respectively.

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