Rupee Continues to Gain Against Dollar As Pakistan Receives Record Remittances - Android

Pakistani Rupee has yet again shown an upward movement in the interbank market rate today. However, the momentum has slowed… Read More

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Pakistani Rupee has yet again shown an upward movement in the interbank market rate today. However, the momentum has slowed down a little.

On November 12, 2020, PKR closed with a gain of 16 paisas against the USD. From PKR 158.49 per USD on November 11, the exchange rate went down to PKR 158.33 on November 12 (today), as per data released by the State Bank of Pakistan (SBP).

At the same time, Pakistan received record remittances of above $2 billion from overseas workers for the fifth consecutive month in October 2020.

According to the SBP, remittances sent by Pakistani expatriates amounted to $2.3 billion during October 2020, increasing by 14.1 percent compared to October 2019.

The local currency is gaining due to a slowdown in importers’ demand for USD, while healthy inflows from remittances and export proceeds also boosted the value of the Rupee. On the other hand, exports are stable and improving.

PKR’s improvement against USD can be said to be the result of the inflow of remittances in USD. The measures implemented by the State Bank of Pakistan (SBP) to encourage overseas investment in the country is another contributing factor.

Improvement in exports, primarily led by the textile sector and partially assisted by the early lifting of lockdown restrictions, has also played its part in strengthening the Rupee against the greenback.

The foreign currency reserves held by the SBP on November 06 were recorded at $12,740.5 million, which is up $558 million as compared with $12,182.6 million.

Pakistan’s currency, which has been a managed-float for most of its history, has seen long periods of stability followed by devaluation.

As part of a $6 billion loan approved last year to avert a default, the nation agreed with the IMF to adjust its currency to a market-based exchange rate that allowed it to move both ways.

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