Another positive development reported over Pakistani Rupee against US dollar
Pakistani rupee to maintain its position against the dollar next week after an improvement in inflows in debt securities and sluggish demand for the foreign currency for import payments, reported link *The News*.
According to the State Bank of Pakistan (SBP), foreign participants invested close to $2.5 billion in Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) during July 1, 2019 to January 23, 2020.
The inflows in debt securities are likely to increase due to attractive rate of returns.
The SBP is scheduled to announce its new police rate on Tuesday for the next two months. The present policy rate is 13.25 per cent, and considering the inflationary pressure, the central bank is unlikely to review any downward revision, according to the publication.
The demand for the greenback may also remain sluggish due to outbreak of coronavirus in China. Pakistan is one of the major buyers of Chinese products. Due to this outbreak followed by health advisory, the importers may remain cautious to purchase dollars for Chinese imports.
Besides, the import bill of Pakistan had already started declining owing to slowdown in the economy and measures taken by the government in the latest budget.
The import bill of the country fell 16.9 percent to $23.23 billion during July–December (2019/20), compared with $27.95 billion in the corresponding period of the last fiscal year.