IMF is happy with Pakistan currency devaluation move
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ISLAMABAD - The International Monetary Fund on Thursday welcomed Pakistan's recent devaluation of its currency, calling it important for economic growth.
"Continued exchange rate flexibility will be important to facilitate external adjustments to support exports and economic growth," Harald Finger, who led an IMF staff mission's visit to Islamabad, said in a media briefing at the end of his visit.
The rupee started weakening after the central bank withdrew its support for the currency last Friday. Since then, the rupee has fallen as low as 110 per dollar after opening at 105.55 on Friday. It has mostly traded at 104 to 105 per dollar since December 2015.
The State Bank of Pakistan's withdrawal of support was considered a devaluation measure because it is the biggest player in Pakistan's thinly traded foreign exchange market and controls what is widely considered a managed float system.
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