Hopes of an agreement from the IMF put the brakes on the dollar’s flight

Karachi: The dollar remained stagnant in both the foreign exchange markets on Tuesday on the expectation that a staff level agreement could be reached anytime this week as Pakistan fulfills all the IMF’s required conditions.

At the beginning of the business period, the interbank rate of the dollar had decreased by 2.91 rupees to 275 rupees at one point, but due to intermittent demand, the value of the dollar recovered, due to which the value of the dollar in the interbank market was only Rs. 5 closed at Rs 277.86 due to loss of paisa while the value of dollar remained unchanged at Rs 279 in the open currency market.

Experts say that there are positive expectations from the Prime Minister’s visit to Qatar as the IMF has directed Pakistan to make necessary foreign exchange arrangements with friendly countries to increase its foreign exchange reserves.

Experts say that all the required conditions have been fulfilled by Pakistan, after which the agreement is just waiting and until the agreement is reached, the dollar will continue to hover around its current value, if the agreement is reached. There is a possibility of a significant drop in the value of the dollar. If the deal is delayed, the dollar may again dominate the Pakistani rupee.

It should be noted that the Chinese Bank has approved a financial facility of one billion 30 million dollars in three installments to improve the balance of payments of Pakistan and released the first installment of 500 million dollars. In the virtual talks between Pakistan and the IMF, there are also reports of the green signal of the IMF staff level agreement, which is likely to keep the dollar in reverse gear in the coming days.