The Pakistani rupee depreciated by Re0.22 or 0.10% against the U.S. dollar, closing at 221.91 compared to 221.69 on Monday.
Traders ascribed this loss to dwindling foreign exchange reserves increased imports, and increased importers’ dollar demand.
As of November 4, the SBP’s foreign exchange reserves decreased by $956 million.
As a result, the central bank’s reserves have dropped to as low as $7.9 billion, which is less than six weeks’ worth of imports. According to the SBP, the reserves decreased due to foreign debt service.
Outbound remittances decreased by 8.6% to $9.9 billion in the first four months of the fiscal year. In October, cash transfers decreased by 15.7% from the previous year to $2.2 billion. In October, remittances decreased by 9.1% compared to the previous month.
