(CTN News) – On Friday, the Pakistani rupee faced a drop against the US dollar in both the open market and inter-bank market.
According to currency dealers, customers were selling the rupee at 286.25 and buying it at 283.25. The Exchange Companies Association of Pakistan (ECAP) reported that by the end of the trading day, the currency had closed at 286.50 for selling and 283.50 for buying.
This is in contrast to Thursday’s closing rates of 283 for buying and 286 for selling.
In the interbank market, the Pakistani rupee fell 0.0 % against the US dollar on Friday. According to the State Bank of Pakistan, the currency settled at 285.37, down 0.10 rials.
The gap between interbank rates and dollar-free market rates must be 1.25% lower than one of the structural benchmarks established by the International Monetary Fund.
Pakistan is now operating under a caretaker government after approving a $3 billion International Monetary Fund loan program in July to stave off a sovereign debt default.
The IMF and Pakistani officials have come to an agreement on the first review of the IMF Stand-By Arrangement program.
This is a crucial development for Pakistan, which has been struggling with low foreign exchange reserves. The State Bank of Pakistan recently reported a significant drop in reserves Dollars due to debt repayments, leaving the country with less than three months’ worth of imports.
Overall, the Dollar country’s liquid foreign reserves are at $12.3 billion, with commercial banks holding $5.12 billion.