IMF deal effects: Pakistan's rupee gains Rs5 against dollar in open market

No interbank trading on Monday because of bank holiday

KARACHI (Web Desk) – The IMF deal is providing pleasant news to Pakistan as the open market on Monday have so far witnessed a Rs5 decline in the value of US dollar, with the greenback being traded for Rs284.

It is in addition to the bullish Pakistan Stock Exchange which has jumped by nearly 2,400 points during trading – on the first business day after a five-day break due to the Eid holidays.

Meanwhile, Monday is the bank holiday, meaning that there is no interbank trading for the dollar which had closed at Rs285.99 on Tuesday last week.

Interbank closing #ExchangeRate for today https://t.co/LMMCkpDTXi#SBPExchangeRate pic.twitter.com/QHHi3Tj0nM

— SBP (@StateBank_Pak) June 27, 2023

This decline in the dollar rate is an obvious result of the IMF agreement that ended the prevailing uncertainty, forcing the people hoarding the greenback to bump the world’s top currency in the market to ensure maximum return as the rupee is expected to appreciate in the coming days and weeks.

However, there are different estimates about how much the local currency is going to gain – with predictions ranging from Rs7 to Rs30. Some circles are even expecting a Rs50 increase in the rupee value.

Malik Bostan - the head of money exchange companies's represetnative body - is confident that the exchange rate would be below Rs270 in the next two or three days.

But the real picture could emerge on Tuesday (tomorrow) when the State Bank of Pakistan resumes its usual operations.

Any appreciation by the rupee would be a great boost to the economy, not only rejuvenating the business and manufacturing activity but also reducing the country’s import bill.