Thursday, December 3, 2020  | 16 Rabiulakhir, 1442
Samaa TV
Facebook Twitter Youtube
HOME > Money

A dollar is now for less than Rs162

Senior research analyst explains reasons for gradual dollar rate decline

SAMAA | - Posted: Oct 23, 2020 | Last Updated: 1 month ago
SAMAA |
Posted: Oct 23, 2020 | Last Updated: 1 month ago
A dollar is now for less than Rs162

The dollar’s open market rate dropped below Rs162 on Friday. It is now selling at Rs161.9.

The last time the dollar traded at this level was nearly five months ago on May 28. The rate has been spiraling down and its value has declined by nearly Rs4 since the start of this month.  

A senior research analyst explained that one of the reasons for the gradual dollar rate decline is that the greenback is weakening internationally.

Another reason, according to him, is Pakistan’s compliance with the Financial Action Task Force (FATF) recommendations. By doing this, more dollars have been flowing through banking channels and hard cash movement of foreign currency through illegal channels of hawala and hundi have been curtailed.

The analyst added that Roshan Digital Accounts may also have had a slight role to play, but not a major one.

Another senior research analyst, Karim Punjani, also said that the amount, $24 million, so far received through Roshan Digital Accounts, is too low to affect the dollar rate.

But BMA Capital Head of Research, Faizan Ahmed, had a different opinion. He said the opening of over 21,000 accounts is phenomenal. The initiative has great potential and will attract more foreign exchange in the future, he said.

Ahmed says the remittance numbers have also been impressive. They were reported at $2.3 billion for September and a record $7.1 billion for the quarter ending in September.

Punjani says deferring of loan repayments for another six months has played a role in the rupee strengthening against the dollar.

He added that debt repayment of $1.8 billion, which was previously deferred till December 2020 in response to the coronavirus induced economic slowdown, has again been deferred for another six months, till June 2021.

However, he thinks the present trend of the dollar rate dropping may be short-lived as the rupee will again come under pressure when the International Monetary Fund programme resumes in January, which was suspended temporarily due to the pandemic.        

He added that pressure on the rupee will increase when Pakistan has to make debt repayments next year.

FaceBook WhatsApp
 
HOME  
 
 
RELATED STORIES

Tell us what you think:

Your email address will not be published.

FaceBook WhatsApp
 

 
 
state bank of pakistan roshan digital account, roshan digital account pakistan benefits, roshan digital account sbp, best international bank in pakistan, open bank account online pakistan, roshan digital account for overseas pakistani, roshan digital account banks list, which bank is best for roshan digital account, open bank account online pakistan, overseas pakistani registration, overseas pakistani portal, overseas pakistani bank account
 

Monthly Salary

Monthly Tax

Monthly Salary After Tax

Annual Salary

Annual Tax

Annual Salary After Tax


MOST READ
MOST READ
AirSial hopes to launch this December
FBR tells 22 banks their employees must file tax returns
OGRA recommends higher petrol prices in December
Pakistan petrol price remains unchanged at Rs100 per litre
Pakistan’s foreign exchange reserves at a three-year high
Government to sell 1300 acres of Pakistan Steel Mills land
How overseas Pakistanis can open Roshan Digital Accounts
Rs14b in relief for industries as NEPRA reduces power prices
 
 
 
 
 
About Us   |   Anchor Profiles   |   Online Advertising   |   Contact Us   |   Feedback   |   Apps   |   FAQs   |   Authors   |   Comment Policy
Facebook   |   Twitter   |   Instagram   |   YouTube   |   WhatsApp