The Pakistani currency, in a defiant stance, held its ground near the Rs287 mark against the US dollar in the interbank market on Friday, marking the fourteenth consecutive day of resisting a significant drop.
According to State Bank of Pakistan (SBP) data, the local currency experienced a marginal decline of 0.05%, or Rs0.13, to close at Rs287.03 against the greenback, displaying a notable resilience in the face of potential depreciation.
This resistance coincides with a surge in workers’ remittances, hitting a seven-month high at around $2.5 billion in October 2023, supporting the currency from sharper declines.
Despite the recent dip, the currency has seen a cumulative decrease of 3.55%, amounting to Rs10.20 over the past 14 days.
Earlier, it had experienced a substantial surge, gaining over 11% or more than Rs30 in a six-week period, reaching a three-month high at Rs276.83/$.
Meanwhile, in the open market, it slid 0.17%, or Rs0.50, closing at Rs288 against the US dollar, as reported by the Exchange Companies Association of Pakistan (ECAP).
In a recent report, Moody’s Investors Service highlighted Pakistan’s precarious position, naming it as running the most vulnerable balance of payment among South Asian nations, citing the continuous high demand for foreign currency compared to available supplies.
The report emphasises the country’s low export rates, currently standing at 10.5% of the GDP. However, it also identifies the potential for significant growth in overseas sales, projected to increase six-fold from the current values.
Published in The Express Tribune, November 11th, 2023.
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