Pakistan rupee has depreciated by Rs. 2.25 against the US dollar and has crashed to Rs.146. Just a couple of days have passed after Pakistan secured $6 billion bailout package from IMF. The aim was to stabilize the foreign currency reserves, but the rupee has fallen down steeply.
The IMF spoke of a “market determined exchange rate” in its statement on the programme, and the financial markets have not taken the words very well. Speculation has broken out in the forex markets, with small and large investors looking towards the greenback.
“The potential for higher rate of dollar is visible in the inter-bank money market,” a banker was recently quoted as saying.
“Fears of further devaluation as a result of the agreement with the IMF have depressed the currency market and the rupee may lose more against the greenback in the coming days,” Secretary General of Exchange Companies Association of Pakistan Zafar Paracha had said.
The Pakistani rupee went into freefall and weakened significantly to 146.25 against one US dollar. This is a record low for the currency which has oscillated between PNR 140 and PNR 145 in recent months. Not many in Pakistan, however, are too pleased with the prevailing situation. While opposition parties have only intensified their attack against the government, common people looking at summer vacations abroad too have been hit hard at what many of them term as an appalling exchange rate.