The dollar became expensive again today in interbank and open markets.
Yesterday, the dollar closed at 275 rupees, or 44 paise, experiencing an increase of 10 rupees, or 55 paise, in the interbank exchange. However, today the interbank rate shows a rise of 1 rupee, or paise, making the dollar more expensive.
By the end of the day in the interbank exchange market, the dollar stood at 277 rupees or 41 paise. Meanwhile, in the open market, the price of the dollar has increased by one rupee to 281 rupees. The standby agreement between Pakistan and the International Monetary Fund (IMF) has contributed to the decrease in the value of the dollar observed yesterday.
Reports indicate that Pakistan has provided the IMF with 9 assurances through the Letter of Intent (LOI). These assurances focus on increasing total foreign exchange reserves by the end of FY 2024. Currently, the reserves stand at $4.056 billion for FY 2023. The country plans to take all necessary measures to boost reserves to 7.65 billion dollars, which will eventually rise to 11.7 billion dollars.
The IMF’s upcoming Executive Board meeting will consider approving a $3 billion short-term bailout package, which includes issuing a $1 billion tranche to Pakistan. The meeting is scheduled for July 12, 2023, in Washington, DC, with the aim of disbursing the $1 billion installment shortly after approval. IMF personnel have already distributed copies of the Letter of Intent to the Executive Board members. This letter outlines Finance Minister Ishaq Dar and State Bank Governor’s commitment to implementing fundamental reforms in the banking and energy sectors, addressing financial account differences, and ensuring their control.