Dollar Reaches Rs 212 at Midday Interbank Trading

On Tuesday, the US dollar hit an all-time high of Rs212 against the Pakistani Rupee (PKR) in midday trading on the interbank foreign exchange market.

The US dollar is now trading at Rs212, up Rs2.04 from yesterday’s interbank foreign currency market close of Rs209.96.

According to currency specialists, foreign exchange reserves have dropped to dangerously low levels, causing market panic. Furthermore, rising oil prices and a global surge in commodity prices drove dollar demand for import payments.

According to statistics issued by the State Bank of Pakistan (SBP) a day earlier, the central bank’s official reserves were insufficient to support nearly one month’s worth of imports.

The State Bank of Pakistan’s (SBP) official foreign exchange reserves declined by $241 million to $8.985 billion in the week ending June 10, 2022, compared to $9.226 billion a week earlier, on June 03, 2022.

The SBP’s reserves are currently at a level that indicates the central bank has barely one month’s worth of import cover.
According to the Pakistan Bureau of Statistics, Pakistan’s import bill for the month of May 2022 was $6.777 billion (PBS).

The SBP’s latest foreign exchange reserves indicated that they had dropped to a 212-year low. The central bank’s foreign exchange reserves were previously estimated to be $9.233 billion on December 6, 2019.
By the week ending August 27, 2021, the central bank’s foreign exchange reserves had reached a new high of $20.146 billion.

The central bank’s foreign exchange has been steadily declining since its peak. From their peak on August 27, 2021, the SBP’s official reserves have fallen to roughly $11.16 billion by the week ended June 10, 2022.

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