The US dollar rose above R193 in the interbank market on Friday morning, reached a new all-time high and broke the previous day record by breaking the Rs192 mark.
It closed at R193, rising by a rupee from the previous day of the closing of R192.
According to the Pakistan Forex Federation (FAP), the start of the day saw a green line worth Rs1.10 from the close of the previous day and reached Rs193.10 around 11am in trading between banks.
Today is the fourth consecutive day that the dollar has risen to a record high compared to the rupee, with the international currency hitting R188.66 on the interbank market on Tuesday, then rising to R190.90 on Wednesday and exceeding R192. Thursday.
Alpha Beta Core Chief Executive Officer Khurram Schehzad told Parhlo.com it was expected that the value of the dollar would increase further today, coupled with developments in the expected strengthening of the greenback in international markets and rising interest rates in the US.
“Moreover, our macros are weak and the IMF (International Monetary Fund) is also not on board,” he added, referring to uncertainty about the agreement with the international lender and the delay in the release of $ 1 billion.
For these reasons, Schehzad explained, the stock market was low and the rupee continued to lose below the dollar was expected.
The depreciation of the rand against the dollar is due to the high debt in the country.
This time, Mettis Global – the online financial data and analytics portal – has shown a rise in the dollar over the ongoing economic crisis in the country, especially the melting of foreign exchange reserves and political uncertainty.
It comes as Pakistan’s State Bank foreign exchange reserves fell by $ 190 billion to $ 10.308 billion over the week ending May 6, the central bank said on Thursday. The national reserves also raised $ 16.375bn while the savings of commercial banks was $ 6.067bn per week.
The ‘inflation storm’ is alarming
Pakistani Foreign Exchange Association Secretary-General Zafar Paracha has painted a bleak picture as the dollar continues to rise and called for coercion “economic crisis”.
He said the dollar was reaching a high daily level, noting that it was trading for about R193 on the interbank market today, about R195 on the market and about R200 on the “gray market”.
“It is expensive [on authorities] every day in the media to control the country but we do not see any government, “he said and warned that a sharp rise in the value of the dollar would lead to an” unimaginable inflation “storm”.
Citing the example of Sri Lanka, an island nation facing a major economic crisis, he said the “trailer is too small” and the situation in Pakistan could be dire. “There (in Sri Lanka) there are only 25 million people and here, we have a population of 250 meters, people with a lot of equipment.
Moreover, he said Pakistan also lacks good relations with its many neighbors and further inflation could lead to a “security situation”.
Paracha urged the court and the parties involved to mobilize political parties to make decisions that affect the country and the nation.
Pointing out that the country’s foreign exchange rate had plummeted, he said, “We only have enough money to make a sale for one to two months.”
Paracha also called on the government to curb unnecessary expenditure, including the use of non-development funds and perks, and to put a cap on the importation of non-essential items.
Malik Bostan, chairman of FAP, suggested that the importation of non-essential assets be prevented to prevent the dollar from rising further.
Talking to Parhlo.com, he also suggested restricting the use of petroleum products to keep foreign exchange reserves stable. “The unnecessary use of diesel in driving large vehicles must be prevented from further escalating the use of our oil, which has increased by more than 30 percent, can be prevented.”
He also suggested that the political parties collectively formulate an “economic agreement” to stabilize the rupee.
Politicians deal with the reduction of the rupee
Meanwhile, PTI chief Imran Khan said the current economic situation, including the decline of the rupee, “shows low confidence in. [the] foreign government “.
“The market is waiting for policy and action, which [the] the foreign government has failed to provide. Both Shaukat Tarin and I have warned ‘neutrals’ that if the plot succeeds, our weak economic recovery will be in jeopardy. It has happened now.
On the other hand, Information Minister Marriyum Aurangzeb criticized Imran for a dollar plane in a series of tweets.
“Imran Khan has put it in Pakistan in a difficult situation. The dollar has reached R193 due to Imran Khan. Inability, inadequacy [rulers]vehicles and the Imran mafia established [on the country] for four years we have been terrorizing the economy in the country, ”he said.
Aurangzeb went on to say that the Imran-led government has terminated the agreement with the IMF and people are now facing their consequences in the form of inflation. “He is responsible for economic instability in the country.
“Today, if difficult decisions have to be made, Imran Khan is responsible for that,” he added. “Imran sahibputting the economy of the country and the nation at risk of saving your politics is like betraying … Imran sahibhe stopped making hue and crying and responding [the nation] on inflation. “