ISLAMABAD: The central bank has so far bought a record 4.2 billion dollars from the market during the current financial year, which is half of the country’s official foreign exchange reserves and far more than the size of the International Monetary Fund’s rescue package the bank’s intervention has kept foreign exchange reserves stable at $8 billion despite heavy loan repayments, it has played an important role in keeping the value of the rupee as low as 278 rupees against the dollar, according to analysts, it’ r these in the absence of interventions. the value should have been less than Rs 250 against the dollar The central bank refrains from answering questions about buying and selling foreign currency. It concealed a massive intervention in the interbank market involving transactions of more than 1.1 trillion rupees to buy at least $4.2 billion. Central bank purchases rarely exceed the size of the IMF’s $3 billion program. One of the reasons for entering the IMF program was to obtain additional loans and increase reserves, but so far the country has received foreign loans of $9.7 billion to cover foreign debt repayments and current account deficits Ashfaq Yusuf Tola, and former chartered accountant chairman of the Revenue and Resources Mobilization Commission said that due to the central bank’s purchases, the rupee has depreciated by 40 to 45 rupees against the dollar, reducing inflation He said it was in the government’s interest to bring the true parity of the rupee to the dollar to Rs 235 by ending market intervention. A 5% reduction in the inflation rate will also help to reduce the interest rate, but the authorities’ counter argument is that if the central bank had not bought dollars, the foreign exchange reserves would have fallen to 3.5 billion dollars , it would have decreased. that there is more inflation. and central bank purchases in less than 10 months are equivalent to 70 percent of the volume of the three-year program There was a failure to secure the inflow of 6 billion dollars due to Eurobonds and foreign commercial loans that the Economic Affairs Division had and r Central Bank, Pakistan 9.7 billion during the first 9 months of the financial year Exchange Rate (REER), which is the value of a currency compared to a weighted average of several foreign currencies The measure rose from , to 104.07 in March 2024, indicating which did not depreciate the rupee.
