The rupee strengthened against the US dollar at Rs163.22 in the inter-bank market on Thursday compared with Wednesday’s close of Rs163.47, according to the State Bank of Pakistan (SBP).

Earlier, the SBP let the rupee depreciate massively in the inter-bank market after finalisation of an agreement with the International Monetary Fund (IMF) for a loan programme on May 12, 2019.

The IMF has asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar and other major world currencies.

Also, the World Bank, which finances some of the infrastructure and social safety net projects in Pakistan, has supported the idea of leaving the rupee free from state control in a bid to give much-needed boost to exports and fix a faltering economy.

Earlier on Monday, the currency hit almost 10-month low at Rs163.67 against the US dollar in the inter-bank market on Monday partly due to increase in demand for the greenback in the wake of rising import payments and huge foreign debt repayments.

Published in The Express Tribune, August 6th, 2021.

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