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Pakistani rupee strengthens after Dar's statement

  • Rupee gained nearly Rs3 and was trading at Rs105.50 to a dollar;
  • FinMin presides over meeting of Bank chiefs to discuss situation;
  • Dar expresses surprise over the depreciation of the local currency
  • Transparent probe to be carried out into recent dollar appreciation;
  • State Bank vows to bring stability in financial markets at all costs;
  • Total liquid foreign reserves held by country stand at $21,367.8mn

ISLAMABAD: Pakistani rupee strengthened sharply after strong statement of the Federal Finance Minister Ishaq Dar that the government would not spare banks and other individuals exploiting the political situation.
The rupee gained against greenback by nearly Rs3 and was trading at Rs105.50 to a dollar.
The conflicting statement was discussed and viewed Wednesday after Finance Minister Ishaq Dar said he won't allow banks, individuals and companies to exploit situation where State Bank said that the fall in the currency was the reflection of the economy.
Finance Minister Ishaq has called a meeting to discuss ways and means to curb adjustment in the rupee. However, with recovery in the rupee it denotes that it was truly exploited and was speculative in nature as higher bidding from corporates and financial institutions led to the biggest fall in the currency.
 Federal Finance Minister Senator Ishaq Dar on Thursday said that a transparent probe will be carried out into recent dollar appreciation. Talking to media persons in Islamabad, he expressed surprise over the depreciation of the local currency. He said, "The forex market is stable and there is no reason in appreciation of dollar."
Responding to a question, Ishaq Dar said, "Foreign exchange reserves currently stand at $21 billion. Of these, $16 billion are with the central bank and the remaining five billion dollars are with the banks."    
Earlier, the Finance Minister held a meeting with the presidents of different banks and discussed matters that led to the devaluation of rupee. 
The State Bank of Pakistan (SBP) on Thursday said it will continue to closely monitor developments in the foreign exchange markets and ensure stability in the financial markets.
In a statement, the Bank said the current exchange rate is broadly aligned with the economic fundamentals.
It said the Pakistani rupee-US dollar exchange rate in the inter-bank market has depreciated by 3.1 percent from 104.90 to 108.25 per US dollar.
The total liquid foreign reserves held by the country stood at US$21,367.8 million on 30June2017.The break-up of the foreign reserves position is as under: Foreign reserves held by the State Bank of Pakistan: US$ 16,143.3 million; Net foreign reserves held by commercial banks: US$ 5,224.5 million; and Total liquid foreign reserves: US$ 21,367.8 million.     
During the week ending 30June2017, SBP's reserves decreased by US$233 million to US$16,143 million, due to payments on account of external debt servicing. - NNI

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