ISLAMABAD – State Bank of Pakistan (SBP) breaks silence over the issue ofdecline in the Pakistani currency against US dollar.
SBP officially admitted that the exchange rate in the interbank marketclosed at PKR 133.64 to USD against previous day’s closing of PKR 124.27 toUSD on October 9, Tuesday.
The Rupee showed a drop of value by Rs 9.37 against USDollar in a singleday and the move seemed to be online with the policy to devalue moneyonline with the government policy of reaching IMF bailout package.
On the other hand, the value of the Rupee dropped to 137 in the open market.
According to the official statement, SBP commented that the exchange ratemovement broadly reflects the current account dynamics and also thedemand-supply gap in the foreign exchange market.
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Although the current account deficit narrowed in August 2018, a consistentincrease in oil import bill on account of rising international oil priceshas exerted pressure in the foreign exchange market.
SBP is of the view that this adjustment in the exchange rate along with thelagged impact of recent hikes in the policy rate, and other policy measuresto contain imports would correct the imbalances in the external account.SBP will continue to closely monitor the situation and stand ready tointervene in case of any unwarranted volatility in the foreign exchangemarket.
