Mohsin Siddiqui (Chief Reporter)
Pakistani rupee continued its positive trajectory against the US dollar in both the open market and the inter-bank market on Tuesday.
Currency dealers, as reported by Business Recorder, indicated that the rupee was quoted at 287.25 for selling and 284.25 for buying in the open market. This shows improvement from the previous day’s closing rates of 287.50 for selling and 284.50 for buying, as reported by the Exchange Companies Association of Pakistan (ECAP).
In the inter-bank market, the rupee maintained a level around 285-286 against the US dollar. It is crucial for the gap between rates in the inter-bank and open markets to be less than 1.25%, aligning with one of the International Monetary Fund’s (IMF) structural benchmarks.
A recent staff-level agreement between the IMF and Pakistani authorities on the first review of the IMF Stand-By Arrangement (SBA) program has injected optimism into the market, potentially unlocking $700 million in funding. This development raises hopes for increased inflows from both multilateral and bilateral partners.
Simultaneously, data released by the State Bank of Pakistan (SBP) on Monday revealed a current account deficit of $74 million in October 2023. On a yearly basis, this deficit marked a substantial decrease of over 91%, compared to the $849 million recorded in the same month last year. The decline is attributed to positive trends in exports and remittance inflows, coupled with a reduction in the import bill.
