KARACHI: In the interbank market on Tuesday, the value of the US dollar increased by 21 paise to Rs279.57 relative to the rupee.
With assistance from the State Bank of Pakistan, which imposed import restrictions, the currency rate has remained steady for more than two months.
The market does not believe that the exchange rate is as favorable as it appears. Experts in currency matters contend that an SBP’s approach, which leaves minimal room for import growth, is what leads to the stable exchange rate.
The interbank market remained liquid, meanwhile, because of the improved influx of export proceeds brought about by the rate stability. The SBP gains from this as well because it purchases dollars from banks to maintain a specific level of reserves.
SBP’s foreign exchange reserves are currently just over $8 billion. However, given the political unpredictability brought on by the divided mandate in the general elections, the Fitch Ratings agency highlighted concerns about the economy’s development and the stability of the exchange rate.
SOURCE: DAWN NEWS
