Exporters in Karachi are quickly selling their dollars amid concerns of potential USD depreciation, leading to a surplus.
Increased Dollar Inflows and Devaluation Fears
Banks, especially those with extensive exporter networks, report significant dollar inflows, pressuring exchange rates. Experts predict further USD devaluation, worrying exporters.
Rupee Strength and Forward Premium Decline
The Pakistani rupee has strengthened against the dollar in the past three months, with interbank rates decreasing. Forward premiums for currency exchange have also dropped notably.
Government Measures and Importer Responses
The government is acting to prevent further dollar depreciation, supporting exporters. Importers are securing dollars at adjusted premiums to manage future costs.
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SBP Directives and Impact on Imports
Banks follow SBP directives, providing dollars to importers based on account funds. Import restrictions persist, impacting economic growth and consumption.
Foreign Exchange Reserves and Anticipated Inflows
SBP reports increased reserves, supported by dollar purchases. Anticipated inflows, including IMF tranches and remittances during Ramazan, are expected.
