UPDATE: State Bank of Pakistan Current currency exchange rates in Pakistan on January 23, 2024.
Karachi: On Tuesday, January 23, 2024,the exchange rate for one US Dollar against Pakistani rupees stood at Rs 279.3 in both the local and open market, with a selling rate of Rs 281.3.
FOREX RATES Pakistan Open Market Forex Rates Updated at : 23/1/2024 10:51 AM (PST) Currency Buying Selling Australian Dollar 182 183.8 Canadian Dollar 205 207 China Yuan 39.32 39.72 Euro 305 308 Japanese Yen 2.02 2.11 Saudi Riyal 74.45 75.2 U.A.E Dirham 76.5 77.3 UK Pound Sterling 354.5 358 US Dollar 279.4 281.4 |
State Bank of Pakistan exchange rates may differ depending on the location and the institution facilitating the exchange, whether it’s an Exchange Company or a bank. Here are the current foreign and local currency exchange rates for the US Dollar, UK Pound Sterling, European Euro, UAE Dirham, Saudi Riyal, and other foreign currencies in Pakistan’s open market.
State Bank of Pakistan (SBP) reported that its foreign exchange reserves reached an almost six-month high, reaching $8.221 billion. The central bank announced that an inflow of $464 million during the week attributed to this increase.
Despite a total rise of $1.31 billion in the State Bank of Pakistan’s reserves, the rupee maintained stability against the US dollar. The interbank market experienced a modest five-paise increase, indicating subdued market reactions despite notable reserve growth in the two-week period. On Thursday, the dollar’s closing price in the banking market was Rs281.67. It showed a slight decrease from the previous day’s Rs281.72.
The increase in the State Bank of Pakistan’s (SBP) forex reserves initiated with the government’s attainment of a nine-month $3 billion Stand-By Arrangement (SBA) with the International Monetary Fund (IMF). After an immediate disbursement of the first tranche, amounting to $1.2 billion, the government successfully attracted inflows from Saudi Arabia and the United Arab Emirates. Cumulatively, these inflows elevated the SBP reserves to $8.138 billion in July.
Implementing stringent measures, the SBP took steps to curb dollar outflows, particularly by mandating banks to arrange dollars before opening any Letters of Credit (LCs). This proactive approach led to a 16.3% reduction in the import bill and a substantial narrowing down of the trade deficit by 34.3% during the first half of the current fiscal year.
The SBP’s reserves serve a specific purpose, primarily earmarked for debt servicing, while commercial banks play a crucial role in maintaining the exchange rate at a predetermined level. Analysts suggest that the stability in the exchange rate has had a positive impact on the equity market, contributing to recent spectacular rallies.
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Pakistan faces a substantial repayment obligation of about $24 billion during the fiscal year 2023-24. Bankers emphasize Pakistan’s consistent fulfillment of debt repayment, instilling confidence in financial, equity markets, and broader trade and industry sectors.
The SBP did not disclose specific details about inflows in the last two weeks. Market sources suggest that entities like the World Bank, Asian Development Bank, and Asian Infrastructure Investment Bank were the sources of these inflows.
Financial market experts emphasize the positive impact of the IMF’s announcement. The executive board meeting on January 11 is eagerly awaited by stakeholders in the economy. Approval for the release of the second tranche of $700 million is anticipated this month.
The government has exceeded the revenue collection target set by the IMF for the first half of the current fiscal year. This accomplishment enhances the likelihood of the release of the final tranche of $1.2 billion in March under the Stand-By Arrangement. Additionally, prevailing sentiment exists within the government and the financial sector. The successful completion of the $3 billion Stand-By Arrangement is seen as a potential pathway. This could pave the way for Pakistan to secure another bailout package from the IMF.
The government has already expressed its willingness to remain committed to the long-term IMF program, signaling its dedication to achieving and sustaining economic stability.
The State Bank of Pakistan reports that the country’s total foreign exchange reserves have increased to $13.22 billion, inclusive of $4.999 billion held by commercial banks during the week. This substantial growth in reserves reflects a proactive and strategic approach in managing the country’s financial position, garnering confidence from both domestic and international financial markets.
