The Pakistani Rupee (PKR) continued to prevail against the US Dollar (USD) and posted gains in the interbank market today. It gained 28 paisas against the greenback after hitting an intra-day high of Rs. 175.1 against the USD during today’s open market session.
It appreciated by 0.16 percent against the USD and closed at Rs. 175.39 today after gaining 10 paisas and closing at 175.67 in the interbank market on Wednesday, 16 February.
Today’s gains come after the State Bank of Pakistan (SBP) enhanced the scope of the Export Finance Scheme (EFS) — both conventional as well as Sharia-based — to allow exporters to obtain financing against their export proceeds through the discounting of export bills and receivables.
It is expected that exporters will now find it easy to consolidate their working capital needs and incentivize them to register their export proceeds in a timely manner to help improve foreign exchange inflows in the interbank market.
In addition to the supportive rates for working capital needs of exporters, the SBP has also provided special relaxation under this facility by increasing the export proceeds realization period up to 180 days if the exporter avails this discounting facility.
Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, acknowledged the Central Bank’s move for making a few changes to its circular by tying it with foreign exchange to encourage exports and incentivize clients by providing concessional short-term credit facilities. “Lower Mark-up Rates are charged to encourage & improve the export performance,” he added.
The PKR reversed its losses against most of the other major currencies and reported gains in the interbank currency market today. It gained seven paisas against both the Saudi Riyal (SAR) and UAE Dirham (AED), 31 paisas against the Canadian Dollar (CAD), and 86 paisas against the Euro (EUR).
Conversely, it lost nine paisas against the Australian Dollar (AUD), and 10 paisas against the Pound Sterling (GBP) in today’s interbank currency market.