KARACHI: With each passing day, the Pakistani rupee is losing its value in the currency market. Not only that but the foreign reserves of the country are also declining. Yesterday, the State Bank released data related to foreign exchange reserves. The data unveiled that Pakistan’s total foreign exchange reserves have fallen to a 10-year low. Along with the decrease in foreign exchange reserves, the rupee continues to depreciate as well.
On Friday, during the foreign exchange transactions in the interbank, the dollar gained another Rs6.64 and traded at a historic high rate of Rs278. However, by the end of the trading hours, the dollar reached Rs276.58. After the recent increase in the value of the dollar in the interbank, the value of the dollar has become equalized in both the interbank and open market.
The decision to remove the cap from the exchange rate has resulted in the alignment of both markets. As for the foreign exchange reserves, Pakistan only has $3.09 billion through which it can only cover 18 days of imports.
The country desperately needs the next tranche of the IMF bailout programme to avoid the evident default.