KARACHI – US dollar crashes against Pakistani rupee by Rs5.86 in theinterbank market while Rs 4 in open market as China granted a $2-billionloan to Pakistan.
According to the details garnered, exchange currency association alsoconfirmed the news that after a period of 4 years, a prominent decline inthe value of dollar is seen today, in interbank market. After falling thevalue of US Dollar 5.86, the US Dollar was recorded Rs122 from Rs127.86.The value of the rupees has been increased in trade business.
Due to the increasing value of rupees, the amount worth 450 billion of loanhas been reduced from the country’s burden. Regarding with the interbank,the value of rupee also increased in the open market as US dollar fallsvalue one rupee.
Exchange Association General Secretary Zafar Paracha said that US Dollar isselling 123 rupee instead of 124 in open market. He predicted that thevalue of US Dollar may further fall in coming hours.
Pakistan has received $1 billion from China. The remaining $1 billion isexpected in the coming week. This has brought the value of dollar down fromRs127.86 to Rs122.
The State Bank has received $1 billion from China. As of July 26, the StateBank had $9.1 billion while commercial banks had over $6 billion. The totalof the country’s foreign reserves is $15.72 billion, said State Bankofficials. On August 2, the foreign reserves of the State Bank will go upby $1 billion as China’s loan will be added.
It is pertinent to mention here that the dollar rose to Rs128 in theinterbank market on July 16, a 5.3% increase from July 13 when it wastrading at Rs121.46. On July 17, the value of the dollar rose to Rs128.40as the value of rupee fell by another 40 paisas against the US dollar.
In January, the dollar was trading at Rs110.7 against one rupee but hassince increased 15.6%, reaching an all-time high of Rs128 on July 16 due topressures on the country’s external front. Pakistan’s trade gap has widenedto $37 billion as imports are 2.5 times higher than exports.