Pakistani rupee continued to depreciate steeply in the interbank market on Friday, closing at Rs262.6 per dollar, down Rs7.17 or 2.73 per cent from yesterday’s close, according to the State Bank of Pakistan (SBP).
The local currency’s value declined Rs24.54 to a record low of Rs255.43 in the interbank yesterday, the largest single-day depreciation in both absolute and percentage terms since the new exchange rate system was introduced in 1999.
Interbank closing #ExchangeRate for todayhttps://t.co/ypqbKr5xot pic.twitter.com/eKUgXjr1Pf
— SBP (@StateBank_Pak) January 27, 2023
Separately, the PKR was changing hands at Rs269 per dollar in the open market at 4:15pm, according to data shared by the Exchange Companies Association of Pakistan (Ecap).
The depreciation comes as Pakistan moves to convince the International Monetary Fund (IMF) that it has a ‘free floating’ exchange rate, ahead of the lender’s visit at the end of this month, which was also announced on Thursday.
The IMF also announced its mission will visit Pakistan from January 31-February 9 to continue the discussions for the 9th review under the Extended Fund Facility (EFF).
This was confirmed by IMF Resident Representative Esther Perez Ruiz to Business Recorder on Thursday.
“At the request of the authorities, an in-person Fund mission is scheduled to visit Islamabad January 31st – February 9th to continue the discussions under the ninth EFF review,” she stated.