KARACHI: After Saudi Arabia stated that it was depositing $3 billion in the State Bank of Pakistan (SBP) to help bolster its foreign reserves, the Pakistani rupee rallied significantly on Wednesday, returning to Rs172.78 versus the US dollar in the interbank market.
According to central bank statistics, the local currency strengthened 1.44 percent (or Rs2.49) in the interbank market to close at Rs172.78. On Tuesday, the local currency hit an all-time low of Rs175.27 versus the US dollar.
The Saudi Fund for Development said late Tuesday that it was depositing $3 billion in the State Bank of Pakistan (SBP) to bolster the country’s foreign reserves.
According to the fund, an official mandate was given to provide $1.2 billion to support Pakistan’s oil product trade this year.
All financial markets took notice of the news, which had a beneficial influence on foreign currency reserves.
In addition, Federal Minister of Energy Hammad Azhar said that the Saudi fund has generously offered a $1.2 billion per year oil delayed payment facility for Pakistan.
For the previous five months, the rupee has been on a downward trend. It has dropped 13.46 percent (or Rs20.51) after reaching a 22-month high of Rs152.27 in May.
According to data issued by the central bank, the local currency has depreciated 9.67 percent (or Rs15.24) from the start of the current fiscal year on July 1, 2021.