Rupee rises at interbank after news of China rollover of $2.3 billion

The rupee was improving against the dollar on Thursday, with a gain of Rs 3 in the interbank market, analysts attribute the development Announcement $2.3 billion in loans from Chinese banks.

According to the Forex Association of Pakistan, the rupee rose by Rs 3 to Rs 207.50, from the previous day’s close of Rs 210.50.

Saad bin Nasser, director of Metis Global, said the rupee’s correction was “long overdue”.

“With news of foreign exchange inflows from China and an imminent deal with the International Monetary Fund (IMF), we are confident that the rupee will strengthen in the coming sessions,” he said.,

“As inflows pick up, we expect exporters – who keep their earnings overseas – to panic and return their earnings, seeing the appreciation in the value of the rupee against the dollar,” he said.

On Wednesday, Finance Minister Mifta Ismail said that Chinese banks have signed a deal for a loan of about $2.3 billion that will be credited to Pakistan’s account within a few days.

Since February, Pakistan has been seeking a rollover of very soon-expiring loans to support the rapidly depleting foreign exchange reserves of the State Bank of Pakistan, which stood at $8.99bn as of June 10.

Also the government got it With the IMF on the federal budget for 2022-23, leading to the revival of the Extended Fund Facility (EFF).

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