ISLAMABAD – Another positive development reported over Pakistani Rupeeagainst US dollar as Rupee is going to stabilise further.
Pakistani rupee to maintain its position against the dollar next week afteran improvement in inflows in debt securities and sluggish demand for theforeign currency for import payments, reportedlink *The News*.
According to the State Bank of Pakistan (SBP), foreign participantsinvested close to $2.5 billion in Market Treasury Bills (MTBs) and PakistanInvestment Bonds (PIBs) during July 1, 2019 to January 23, 2020.
The inflows in debt securities are likely to increase due to attractiverate of returns.
The SBP is scheduled to announce its new police rate on Tuesday for thenext two months. The present policy rate is 13.25 per cent, and consideringthe inflationary pressure, the central bank is unlikely to review anydownward revision, according to the publication.
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The demand for the greenback may also remain sluggish due to outbreak ofcoronavirus in China. Pakistan is one of the major buyers of Chineseproducts. Due to this outbreak followed by health advisory, the importersmay remain cautious to purchase dollars for Chinese imports.
Besides, the import bill of Pakistan had already started declining owing toslowdown in the economy and measures taken by the government in the latestbudget.
The import bill of the country fell 16.9 percent to $23.23 billion duringJuly–December (2019/20), compared with $27.95 billion in the correspondingperiod of the last fiscal year.
