The Pakistani rupee fell by Rs4.00 in a single day on Tuesday, surpassing Rs204 versus the US dollar for the first time in the inter-bank market.
According to the central bank, it was available for purchase for Rs204 at roughly 1:40 pm on Tuesday, after closing at Rs200.06 versus the greenback on Monday. The rupee fell for the third straight working day.
Foreign cash inflows from abroad Pakistanis via their Roshan Digital Account (RDA) fell to a 15-month low of $189 million in May 2022, putting pressure on the Pakistani rupee.
According to data compiled by Ismail Iqbal Securities from State Bank of Pakistan (SBP) records; foreign Pakistanis’ investment in Naya Pakistan saving certificates via RDA reached a 21-month low of $13 million in May.
In May, inflows through RDAs fell for the second consecutive month. After reaching a high of $290 million in March, the penultimate month of the PTI government.
To stabilize the country’s foreign exchange reserves, former Prime Minister Imran Khan, in partnership with the central bank, implemented RDA for abroad Pakistanis in September 2020.
In the last 21 months, non-resident Pakistanis have deposited over $4 billion through RDA.
However, reserves have been drained by more than $7 billion in the last six months. Leaving crucial levels of six-week import cover at $9.72 billion.
Pakistan is likely to begin the International Monetary Fund’s (IMF) $6 billion loan program in June. Following the current administration’s presentation of the annual budget for the next fiscal year.
Authorities will present the budget in the Nationality Assembly on June 10th.
The rupee has been under pressure due to the lengthy delay in the restart of the IMF program. For the past year, the program has been static.
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