Pakistan rupee Monday mostly ended steady versus the US dollar in the interbank trade, owing to lukewarm demand for the greenback, while dealers are not upbeat on a strong recovery until foreign exchange reserves are replenished.
\nThe rupee finished at 221.69 to the dollar, down -0.02% from its Friday close of 221.64.
\nAnalysts said it was a result of negative sentiment that was fanned by the shrinking dollar stash of the country.
\n\u201cTraders are perplexed because of an erosion in foreign exchange reserves, bringing the rupee under pressure,\u201d a money dealer said.
\nState Bank of Pakistan\u2019s (SBP) foreign exchange reserves saw a massive erosion of $956 million, falling to $7.96 billion, dented by debt payments, central bank data showed last week.
\nTotal liquid foreign reserves held by the country stood at $13.72 billion. Net foreign reserves held by commercial banks clocked in at $5.76 billion after a reduction of $2 million.
\n\u201cDuring the week ended on November 4, 2022, SBP\u2019s reserves decreased by $956 million to $7,957.0 million due to external debt servicing,\u201d said the SBP in a statement.
\nThis leaves the country with an import cover for 1.16 months only.
\n\u201cMajor external debt repayments executed during the week include repayment of government\u2019s commercial loans,\u201d it said.
\nThe SBP further said that refinancing of these loans was in the process which would improve foreign exchange reserves in the coming weeks\u201d.
\nThe reserves are crucial for the country amid the current situation, where it has to also import edibles after the cataclysmic floods devastated the agricultural crops and dealt damages estimated at over $30 billion.
\nThe country is expected to receive inflows from bilateral and multilateral lenders, which will not only help meet the debt obligations but also improve foreign exchange reserves and ease pressure on the rupee.
\nChina and Saudi Arabia have given assurances to Pakistan for providing a financial package of $13 billion. Saudi Arabia\u2019s Crown Prince Mohammed bin Salman is scheduled to visit Pakistan this month during which Islamabad hopes to get a $4.2 billion bailout package from Riyadh.<\/p>\n","protected":false},"excerpt":{"rendered":"
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