Finance
Following the country’s staff-level agreement with the International Monetary Fund (IMF), the Pakistani rupee (PKR) has gained significant value versus the US dollar.
According to the State Bank of Pakistan, the greenback was trading for 275.44 PKR in the interbank market on Tuesday.
The US dollar closed at 285.99 PKR on June 27, and it fell on Tuesday after the local currency strengthened by 10.55 PKR, or approximately 3.83 percent, against the greenback, according to government numbers cited by Xinhua.
This is the largest day-on-day recovery since May 12, when the Pakistani rupiah gained 13.85 PKR, or 4.86 percent, against the US dollar.
Last week, the IMF and Pakistan struck a staff-level agreement on a nine-month Stand-By Arrangement in the amount of roughly $3 billion. The agreement is subject to approval by the IMF Executive Board, which is anticipated to examine it by mid-July.
According to market observers, the agreement with the IMF generated optimistic sentiments in the market, resulting in this substantial recovery as the country’s foreign exchange reserves had been dwindling in recent months, causing the local currency to devalue.
Analysts believe that the IMF’s program will boost the country’s foreign reserves and potentially raise the cash-strapped country’s credit ratings globally, resulting in additional strengthening of the local currency in the following days.
Source:IANS
