Remittances of $3 Billion Strengthen Pakistani Rupee Against Dollar

Karachi: In an unexpected turn of events, remittances from overseas Pakistanis amounted to $3 billion in July, contrary to expectations. This influx, combined with the continued increase in official foreign exchange reserves for the second consecutive week, contributed to a strengthening of the rupee against the dollar in the interbank market on Friday.
The interbank market saw the dollar’s rate decrease by 13 paisas, closing at 278.55 rupees. Conversely, in the open currency market, the dollar’s value remained stable at 280.40 rupees, showing no change.
Positive developments, such as anticipated approval of the IMF program and a 30% increase in the value of Pakistani bonds and Sukuk globally, have bolstered the rupee. Furthermore, the assurance of deferred payments for a year amounting to $12 billion from China, Saudi Arabia, and the UAE has increased expectations of the IMF’s new loan program approval, further stabilizing the rupee against the dollar.