According to State Bank Of Pakistan, the rupee continued its appreciation against dollar in the inter-bank market on Wednesday and closed at 160.62.

In 2019, the SBP let the rupee depreciate in the inter-bank market after an agreement with the IMF for a loan program.

The IMF had asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar and other major world currencies. Also, the World Bank, which finances some of the infrastructure and social safety net projects in Pakistan, had supported the idea of leaving the rupee free from state control in a bid to give much-needed boost to exports and fix a faltering economy.

The improvement in the real effective exchange rate (REER) has helped rupee to strengthen against dollar.

The Pakistani Rupee is looking strong, competitive & market-driven. Expectations of an increase in exports is also contributing to the rise in the rupee’s value. More exports will drive currency stability.

Pakistan has received significant inflows in the form of remittances in the last couple of months. The measures taken by the State Bank of Pakistan (SBP) to encourage overseas Pakistanis to send money home through legal channels have started to show results.


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