Pakistani rupee continues to weaken against the dirham and dollar
Key takeaways:
- Rupee reaches 68.5 against the dirham in the open market.
- Pakistani rupee strikes a 3-month low against the UAE dirham.
Pakistani rupee continues to drop against the UAE dirham, hitting an almost three-month low due to political and economic uncertainty, reducing foreign exchange reserves, declining remittances and a high trade debt.
Economic and Political issues whip Pakistan:
The South Asian nation has witnessed political and economic disruption since April 2022 as the government and opposition have locked horns over different subjects.
The rupee was cited at 62 versus the UAE dirham (228.15 versus the US dollar) at the business houses in the nation over the weekend. At the same time, the online foreign exchange website XE mentioned the rupee at 62.12 on Sunday morning. It was at the same rate in the first week of October 2022.
The South Asian money is still below its all-time low of 65.3, which will hit in late September 2022.
Pakistan rupee continues to fall:
According to the State Bank of Pakistan’s latest report, workers’ remittances fell 3.2 per cent month-on-month and 19 per cent year-on-year to $2 billion (Dh7.34 billion) in December 2022.
Getting $14.1 billion in the first half of the 2022-23 fiscal year, the remittances are low by 11.1 per cent, likened to the same time last year. Remittances inflows during December 2022 were primarily sourced from Saudi Arabia ($516.3 million), UAE ($328.7m), the UK ($314.2m) and the US ($230.5m).
Pakistan’s trade debt from July-December 2022 was at $17.13 billion compared to $25.43 billion at the same time last year.
68.5 versus in the open market
The UAE dirham and US dollar are exchanging much higher in the Pakistan open market, which is mirrored in the hawala system. The rupee was 68.5 against the UAE dirham or 236.25 against the US dollar via the hawala system.
