By WEB DESK: The Pakistani rupee became Asia’s best-performing currency, showcasing a remarkable appreciation against the US dollar over the past year.
This surge is attributed to the influx of foreign currency through the Roshan Digital Account (RDA), which recently surpassed a historic milestone, exceeding $8 billion.
According to the State Bank of Pakistan (SBP), non-resident Pakistanis have contributed over $8 billion through the RDA since its inception approximately 45 months ago in September 2020.
Moreover, the SBP expressed gratitude towards overseas Pakistanis for their steadfast support and confidence in the initiative.
Furthermore, recent data reveals that expatriates sent a notable $169 million from May 1 to 24, 2024, propelling total inflows to surpass $8 billion, up from $7.83 billion at the end of April 2024. This surge in RDA inflows notably precedes Eidul Azha in mid-June.
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The increased remittances from overseas Pakistanis signify their heightened support for family members and relatives, particularly during elevated inflation within the country.
However, despite the substantial inflows, net funds in the RDA stood at $1.32 billion in April, as non-residents utilized a significant portion for familial support and withdrawals.
The primary objective behind introducing the RDA was to offer attractive investment opportunities to overseas Pakistanis, such as the Naya Pakistan Certificates (NPC). These inflows have played a pivotal role in stabilizing the country’s foreign exchange reserves, currently at a 10-month high of $9.15 billion.
Notably, the Pakistani rupee has appreciated by 3.1% over the past year to Rs278.12/$ on the MSCI Asia Emerging and Frontier Markets Index. This appreciation is attributed to various factors, including RDA inflows, workers’ remittances, stable export earnings, and loans from multilateral creditors.
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