Rupee Gains More Value

Stands at 283.21/$ as remittances via exchange firms rise 15%

Karachi: Pakistani currency maintained its uptrend for the fifth successive working day on Monday, reaching over six-week high at slightly above Rs283 against the US dollar in the inter-bank market as supply of the foreign currency increased.

According to State Bank of Pakistan’s (SBP) data, the rupee ticked up 0.02%, or Rs0.05, and closed at Rs283.21 against the greenback. The currency has cumulatively gained a net 0.85%, or Rs2.43, in the past around three weeks.

Exchange Companies Association of Pakistan (ECAP) reported that the rupee remained unchanged at Rs284.50/$ in the open market for the fourth consecutive working day.

Market talk suggests that a current account surplus of $9 million in November 2023, which came after a hiatus of four months, kept sentiment positive in the inter-bank market, helping the rupee to extend gains for another day.

In addition, the rupee was supported by the signing of memoranda of understanding with China for $10 billion in investments in Pakistan and an increase in the foreign exchange reserves held by the central bank.

In an interview with APP, ECAP General Secretary Zafar Paracha stated that after a recent crackdown on hoarders and smugglers, worker remittances to Pakistan via currency exchange companies had increased by 10% to 15%.

He claimed that Pakistan’s reserves were strengthened by the government’s crackdown, which was quite successful.

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“We’ve seen a substantial rise in remittances flowing into the country through exchange companies, whose daily exchange value has increased to $50 million.”