Summary The dollar jumped Rs18.98 in value against the local unit on Thursday
LAHORE (Web Desk) - The US dollar depreciated by Rs8.34 against the Pakistani rupee in the interbank market in early trading session on Friday.
The greenback is being traded at Rs276.75 during the intra-day trade. However, the local currency recorded historic plunge on Thursday as it lost Rs18.98 against the dollar that was closed at Rs285.09 yesterday.
The strengthening of the local currency against the dollar followed Finance Minister Ishaq Dar's statement that stalled agreement between Pakistan and the International Monetary Fund (IMF) is likely to take place next week. Another positive factor is yesterday's transfer of Chinese loan to Pakistan.
Exchange Companies Association of Pakistan (ECAP) secretary general Zafar Paracha was of the view that the IMF had asked Pakistan to trade the greenback at the current Afghan trade rate.
He said in other words, the IMF had said Pakistan's actual rate should be as in the grey market rate, not the interbank rate or the open market.
"They [IMF) are right as the availability and trade of dollars taking place right now is only in the grey market,” Paracaha added
On Thursday the minister said Pakistan’s negotiations with the IMF were about to conclude and Staff Level Agreement with the fund is expected next week.
In a tweet, the finance minister said some Anti-Pakistan elements were spreading malicious rumours that Pakistan may default.
He said, these rumours were not only completely false but also belie the facts.
The State Bank of Pakistan’s (SBP) foreign exchange reserves have been increasing and are almost US $ 1 billion higher than four weeks ago despite making all external due payments on time, he added.
The finance minister said, the foreign commercial banks have started extending facilities to Pakistan.
The central bank received $700 million as GoP commercial loan disbursement from China and after accounting for external debt repayments, the SBP reserves increased by $556 million.
