Currency dealer fears dollar could reach Rs 200 soon.
The rupee continued to depreciate against the US dollar today and reached a record high of Rs 192 in the interbank market.
According to the Forex Association of Pakistan, after closing at Rs. The highest price.
Chad Manhattan Bank Treasury Head Asad Rizvi told web-based financial data and analytics portal Mets Global that the Pakistani rupee has depreciated by almost 9% against the dollar since the Russian invasion of Ukraine.
He further pointed out that the economic slowdown as a result of Russian aggression and high oil prices had hurt other currencies including the Indian rupee and led to rising inflation.
The rupee’s decline against the dollar is being linked to the country’s high import bill as well as the delay in the release of a ارب 1 billion tranche by the International Monetary Fund (IMF).
A report in the Dawn newspaper yesterday said that the rise in the exchange rate has shaken the economy.
The rupee was losing value mainly due to uncontrolled growth in imports and relatively slow growth in exports, reflected in the trade deficit which reached 39 39 billion in July-April.
Currency dealers said high demand for the dollar was the main reason for the bullish trend in the currency market. Further eroded trust.
The daily depreciation of the local currency can cause a serious panic as investors experience uncertainty, rising inflation and depreciation of the local currency means a decline in the purchasing power of consumers as traders Demand higher returns to save investment.
Currency experts and dealers fear that the rupee will depreciate further in the coming days unless there is a possibility of earnings from elsewhere.
Currency dealer Zafar Paracha termed the situation as dangerous and expressed concern that the value of the dollar could soon reach Rs 200 in view of increasing demand for the dollar.
Meanwhile, Malik Bostan, chairman of the Forex Association of Pakistan, said that the interbank market is more volatile than the open market and this has led to increased demand for the dollar.
He added that those planning to go on Hajj are buying dollars due to the shortage of Saudi riyals and as a result the value of the dollar has also increased in the open market, but he believes that the demand for dollars This increase is temporary.
He hoped that the IMF would agree to increase the volume of its ارب 6 billion loan program to 2 2 billion, a possibility linked to the rapid recovery of the rupee. The energy subsidy introduced by the government is conditional on full withdrawal.
However, the government has not yet decided to withdraw these unsustainable subsidies financially.
Meanwhile, importer and former president of Karachi Chamber of Commerce and Industry Abdullah Zaki, noting the growing difficulties after the rise in the value of the dollar, said that the prices of imported goods have risen and consumers will have to bear the brunt of it. ۔