"But if there is speculation in the market then SBP and finance ministry cannot be mere spectators. The analyst said that one of IMF's conditions is to let the rupee trade on its fundamentals and that it should not be controlled. It also makes it hard for the government to reach out for any kind of guaranteed support from friendly countries which is now a condition put by IMF," she told the publication. "Such political uncertainty aggravates the situation and leads to more speculation in the currency market. Shahzad stated that as Pervez Elahi takes over Punjab, questions are raised on the survival of Prime Minister Shehbaz Sharif's government in the Centre. "Many timelines were given by the finance minister and therefore it seems his positive words are not successful in calming down the markets anymore as the rupee continues to fall against the dollar," she said, adding that despite the positive statements given by Miftah, "speculation doesn’t seem to subside." The analyst said that in the past, Miftah's claims of Pakistan reaching a staff level agreement with IMF "were not helpful in providing a cushion to the markets" as the agreement happened with much delay.
Rupee to usd plus#
"While mentioning the decline in imports he stated that 'import number will be less than our exports plus remittances.' He even mentioned that there is a $4 billion gap in our debt payments which would be covered comfortably by the commitments from our friendly countries (like Saudi Arabia, Qatar and UAE)," she said, sharing the developments so far. Finance Minister Miftah Ismail recently claimed that fall in rupee is not due to economic fundamentals which is also supported by his recent tweet as he states that with the measures taken by SBP, runaway imports from last year have come under control. "The forex reserves have dangerously dropped down and now stand at $8.5 billion during the week ended on July 22.
Countries whose currencies are following this trajectory are Sri Lanka, Ghana, Turkey and Ukraine. Speaking to Geo.tv, analyst Rabeea Shahzad said that the Pakistani rupee is one of the weakest currencies this year, dropping by 25%.
0 kommentar(er)
