KARACHI: For the third straight session on Wednesday, the rupee was under pressure versus the US dollar, even though the negotiations with the International Monetary Fund and the Saudi team that was here were favorable.
The dollar gained 11 more paise versus the local currency, according to the State Bank of Pakistan (SBP), making it Rs278.40 from Rs278.29 the previous day.
According to currency dealers, the dollar’s current upward trend has no clear cause. They argued that the market acts in accordance with information regarding the availability of dollars in the market, SBP reserves, and the potential for future inflows, and that the exchange rate’s shortcomings have been recognized for years.
Although the kingdom has started the process of choosing sectors and projects for future investments, the Saudi delegation has promised investment in Pakistan, though it would take some time. The Saudi government declared this year that it would no longer be providing loans, grants, or other forms of assistance to Pakistan; instead, investments would be made to strengthen the nation.
However, to help the SBP’s meager foreign exchange reserves, the Saudi government has already deposited $2 billion into the State Bank’s account. It had previously done the same.
The Saudi government reportedly put $5 billion into the SBP account, according to banking sources.
