Karachi: Pakistan bonds reached their highest level in 15 months in the hope that more Ben after securing the country’s International Monetary Fund (IMF) installment International funding continues; The News reported Tuesday.
Hope for the country’s economy after the installment has doubled the bonds as it was in late May as the country is in the grip of a debt crisis.
Bonds attributed to the 2036 dollar increased the most, adding 2.4 cents to the trade of 57.76 cents per dollar. The 2025 maturity rose just under 2 cents, reaching 82.37 cents per dollar, its strongest level since May 2022.
The latest phase of the rally, which began last month، It began with the hope that the February elections would bring political stability and create some economic confidence. Last week’s agreement to unlock $700 million IMF funding also boosted the country’s bonds.
Meanwhile, it lost some of its trade competition in October as it praised the major trading partners against a basket of currencies، Central bank data shows.
The Real Effective Exchange Rate (REER) Index, which measures the value of Rs، In October, it increased from 91.7 in September to 98.6, according to the State Bank of Pakistan (SBP).
Less than 100 REER indicates that the country’s exports are cheaper and imports are more expensive, which makes it superior to international trade. High REER means the opposite. REER increased 7.51% month-on-month in October but decreased 2.9% year-on-year when it stood at 101.57.
The nominal effective exchange rate (NEER) index, which measures the value of Rs. against a single basket of currencies without adjusting inflation، I also increased by 6.5% per month from 39.18 in October to 36.79 in September. NEER fell 21.46% year on year from 49.89 in October 2022.
REER and NEER are calculated using the trade weight of 37 countries, which is 90% of Pakistan’s trade flow. Exporters’ dollar sales and optimism about the country’s economy following Pakistan’s agreement with global lenders for the next loan installment on Monday The rupee continued to rise against the dollar.
In the interbank market, the rupee closed at 285.97 against the dollar, while the previous was close to 286.50. During the session, the local unit increased by 0.19% against the dollar. The local currency increased by 75 against the greenback in the open market.
According to the rates issued by the Exchange Companies Association of Pakistan (ECAP), the rupee was trading at 287.50 for sale, while on Friday the rate was 288.25.
A currency dealer said that despite the decline in “ forward premiums, exporters are returning to the market to sell dollars، In the hope that the rupee will become stronger in the coming days. The dealer added that the rupee helps with better supply and better economic outlook.
The currency market forecast is that the rupee will increase to about 28 282 per dollar, at which point the SBP will resume buying dollars. According to one dealer, the rupee will remain strong due to the flow of positive news such as multilateral funding and IMF executive board approval.
