In the interbank market, the dollar rose by 84 paise to Rs 168.94 against the Pakistani rupee on Tuesday, the highest level in the country's history.
Earlier, on August 26, 2020, the dollar was recorded at Rs 168.43.
In the open currency market, the dollar rose by 80 paise to a high of Rs 169.80.
Why is the dollar rising?
Malik Bostan, chairman of the Forex Association of Pakistan, says imports have been steadily rising. In July, Pakistan imported 5 5.5 billion, which increased to 6. 6.5 billion in August. Billion dollars increased.
Talking to SAMAA Digital, Malik Bostan said that there are many importers who have Pak-Afghan dual citizenship while many have businesses in both the countries. Such importers are also importing goods from Pakistan to Afghanistan. Due to the increase in Pakistan's import bill and growing trade deficit.
According to Malik Bostan, in addition to this, Pakistan also has to make external payments. In the next four months, a total of ارب 44 billion is to come to the country and 53 53 billion is to be paid in terms of trade deficit, debt and interest. There is a gap of billions of dollars which is putting pressure on foreign exchange reserves and Pakistani rupee.
According to economic analyst Raza Jafari, word is circulating in the market about the repayment of loans taken from China for C-Pack projects, which is about ً 3 billion, in addition to the payment of profits from investors. The dollar has to do, which has increased the value of the dollar.
Economist Abdul Azeem says the main reason for the rise in the value of the US dollar is the growing burden of imports, especially Pakistan's large share of oil imports, so if the price of oil rises in the global market, the effect will be local. It also appears in the currency market.
According to Abdul Azeem, the news of payment to China also had an effect on the market, but China will be persuaded to delay payment through negotiations.
He said that the dollar could go up to the level of Rs 170 but if it goes above that, the SBP is expected to intervene so the value of the dollar is not likely to rise much.
The dollar depreciated as the country's trade deficit narrowed and the value of the dollar began to rise again as the trade deficit widened. The rupee has risen to about 152.40 against the dollar on May 7, about four months ago.
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