In a continued display of strength, the Pakistani Rupee has secured its sixth consecutive weekly gain against the US Dollar, appreciating by 0.25% or Re0.73 in the interbank market. This sustained positive trend, attributed to the recent staff-level agreement between Pakistan and the International Monetary Fund (IMF), marks a commendable stride for the local currency.
Since the announcement of the SLA on November 15, the Rupee has gained Rs5.61 or 1.94% against the Dollar, signaling a robust economic landscape. Despite a dip in foreign exchange reserves held by the State Bank of Pakistan, falling below $7 billion due to debt repayments, the overall economic outlook remains optimistic.
Austerity measures are being considered to control current expenditure, reflecting a commitment to fiscal responsibility. In the open market, the Rupee showcased its strength by gaining 50 paisa against the USD, closing at 281.00 for buying and 284.00 for selling.
Asad Rizwi, a former Treasury Head, credits the Rupee’s stability to inflows from the IMF and other sources, emphasizing the positive impact of the successful SLA. Pending IMF Executive Board approval, this agreement is set to grant Pakistan access to SDR 528 million, approximately $700 million, further fortifying the nation’s economic resilience.
Amid ongoing challenges, the Rupee’s ability to maintain this winning streak showcases its resilience and determination, positioning Pakistan on a path of financial stability and growth.