KARACHI: The rupee has recovered 2.5 per cent against the dollar since the beginning of FY21, reflecting some stability in the exchange rate after reaching close to Rs169 in the previous fiscal year.

The dollar closed at Rs163.83 on Friday while the price of greenback at the end of FY20 (June 30) was Rs168.05, representing a gain of Rs4.22 for the local currency since during the new fiscal year-to-date.

Though the US dollar gained 11 paisas against the rupee on Friday, the last day of trading in the interbank market, bankers said the inflows were increasing.

“The inflow through the new channel to attract dollars is also working. Overseas Pakistanis have started using the Roshan Digital Accounts which was just introduced by the State Bank,” said a senior banker.

However, neither banks nor the SBP has data about the inflows. Roshan Digital Account was inaugurated by Prime Minister Imran Khan on September 10 and is a major initiative of the SBP in collaboration with commercial banks operating in Pakistan to facilitate millions of overseas Pakistanis and attract foreign exchange.

The dollar rates were slightly higher in the open market at Rs164.10 but dealers said the trading is extremely slow as the buyers are not available.

“Due to the absence of currency buyers, we have deposited $283 million in banks in August while we more or less expect the same amount for September,” said Malik Bostan, President Forex Association of Pakistan.

Published in Dawn, October 10th, 2020