PKR continues to slide for third consecutive session

Pakistani rupee on Friday recorded losses for the third consecutive session against the US dollar after a depreciation of 0.44% in the interbank.

As per the State Bank of Pakistan (SBP), the rupee closed at 222.47 after a fall of Rs0.97. Since October 13, the rupee has decreased by Rs4.09 or 1.84% against the US dollar.

Interbank closing #ExchangeRate for todayhttps://t.co/BhFb9GE70Q pic.twitter.com/3ZTwWb6ruI

— SBP (@StateBank_Pak) October 28, 2022

On Thursday, rupee had registered back-to-back losses against the US dollar, and closed at 221.5 after a fall of Re0.82 or 0.37% in the inter-bank.

Moreover, the State Bank of Pakistan’s (SBP) foreign exchange holdings decreased by $157 million to $7.44 billion for the week ending October 21, 2022.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.16 billion.

“During the week ended on October 21, 2022, SBP’s reserves decreased by $157 million to $7,439.9 million due to external debt repayment,” said the SBP in a statement.

SBP received $1.5 billion from ADB on October 26, 2022 as disbursement of loan for the government of Pakistan.

“These proceeds will be reflected in SBP reserves for the week ending October 28, 2022,” it said.

For Pakistan, which has been frantically pursuing dollar inflows to meet its balance-of-payments needs, the reserve position is crucial.