On Friday, the US dollar dropped down by Rs3 against the Pakistani currency, sliding down to Rs199 in the interbank market. The drop off in the dollar’s value occurred after the government decided to remove petroleum subsidies in line with the conditions of the International Monetary Fund (IMF).
According to the forex dealers, the greenback was now being traded at Rs199.75 down Rs2.26 against the Pakistani rupee.
However, the dollar continued to fluctuate and closed at Rs202.1, on Thursday.
Interbank closing #ExchangeRate for todayhttps://t.co/OX1iMNpVcS pic.twitter.com/6zIsY5CCas
— SBP (@StateBank_Pak) May 26, 2022
On Thursday night, the government raised the prices of all petroleum products by Rs30 per litre — the highest-ever increase in the prices of all petroleum products in one go — in a bid to rein in the fuel subsidies that had been a sticking point in talks with the IMF and resumption of a $6 billion facility, which has been stalled since early April.
The revival was expected to bring stability to the financial markets, the fast-weakening Pakistani rupee, and the depleting foreign exchange reserves, as the government had pinned hopes on the programme’s resumption.