According to Khaleej Times, the Pakistani Rupee (PKR) has witnessed a significant surge of five percent against the AED following the country’s successful loan agreement with the International Monetary Fund (IMF). This positive development is expected to bolster the value of PKR in the days to come. However, industry experts caution that PKR may still experience volatility in the near future due to political uncertainties and dwindling foreign exchange reserves.
It’s worth noting that fluctuations in PKR’s value may persist during this period. On Tuesday, PKR experienced a noteworthy appreciation of nearly five percent against the USD (from 285.50 to 272) and also demonstrated improvement against the AED (from 77.73 to 74.05).
The recent loan package of $3 billion secured by Pakistan from the IMF on Friday played a pivotal role in boosting PKR’s value on Tuesday. Presently, Pakistan’s total liquid foreign reserves amount to $9,340.8 million, with the central bank holding $4,069.9 million of these reserves.
Rajiv Raipancholia, the CEO and Managing Director of Orient Exchange, remarked, “The rupee has lost more than 20 percent this year, so a five percent appreciation is acceptable by the market,” as quoted by Khaleej Times.
Additionally, a representative from LuLu Exchange highlighted certain factors contributing to the rise in PKR’s value. These include the anticipated appreciation of the currency in the interbank market, as trading activities were halted during the recent Eid holidays and a bank holiday in Pakistan on Monday.
While PKR is expected to remain volatile, there is an optimistic outlook due to the anticipated financial inflows from the IMF package. In the short term, PKR is predicted to trade within a range of 70 to 76 against the AED, as stated by a representative from LuLu Exchange.
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