ISLAMABAD: State Bank of Pakistan (SBP) Governor Tariq Bajwa Sundayexpressed the hope that the slide in rupee value would be stemmed oncemoney flows into the economy.

Bajwa said the dollar rate is dependent on two factors: macroeconomicfundamentals and market sentiments.

According to a private news channel, he said “As money [flows into] theeconomy [through cash injected], Insha’Allah you will see, the marketsentiment will improve… the pressure will dissipate from the rupee.”

The central bank governor said the Supreme Court’s decision to end themobile phone tax affected the country’s tax net.

Bajwa added that Finance Minister Asad Umar knew about the spike in thedollar and had already clarified in a statement earlier that the rupeedevaluation had been discussed with him.

On November 30th, the rupee hit an all-time record low of Rs. 144 againstthe US dollar, plunging almost five percent after what appeared to be asixth devaluation by the State Bank in the past year as the countrystruggles with an acute balance of payment crisis.

The surge in dollar came owing to the widening current account deficit andthe International Monetary Fund’s suggestion to the government to realignthe rupee with market fundamentals to access funds.

The rupee has depreciated by 36 percent against the dollar over the past 12months.

It has fallen by Rs. 19.5 against the dollar since the PakistanTehreek-e-Insaf took the reins of the country following the generalelection in July this year.