On Wednesday, 11 August 2021, The exchange rate of the Pakistani rupee depreciated by 17 paise against the greenback as the expanded demand of greenback for import payments burdened the local unit.
In the inter-bank market, the exchange rate ended at Rs 163.92 against the greenback which was 10 percent weaker as compared to the Tuesday closing of Rs 163.75 per dollar.
The rupee ended at 164 within the open market, unaltered from the past sessions. The local currency’s value is currently at a 10-month low as compared to the greenback.
The currency dealers said that the facility in the coronavirus limitations had urged the importers to place more orders to their foreign providers. They added that the rupee has dropped back because the importers have bought the greenback to settle their payments.
They also said that the rising prices of oil in the international markets were additionally another concern for the greenback demand in the local trade market.
According to the State Bank of Pakistan, the state bank let the rupee deteriorate immensely in the inter-bank market after the completion of an agreement for a loan program of the International Monetary Fund (IMF) on 12 May 2019.
The International Monetary Fund (IMF) has requested Pakistan that end state control of the rupee and let the currency move unreservedly to find its harmony against the US greenback and other major currencies.
In July 2021, The import bill of the nation enlisted a huge development of 48 percent.
The import bill was recorded at $5.43 billion during the month under audit, contrasted with and $3.67 billion around the same month of the last year.
The trade deficit of the nation additionally broadened 85.50 percent, due to high import bills.
The currency dealers said the Trade deficit would put pressure on the equilibrium of payments for the month.
