The Pakistani rupee extended its losses on Thursday sliding another Rs. against the US dollar in the interbank market . The rupee lost . per cent as Pakistan eased import restrictions to abide by conditions set under a . billion bailout package from the International Monetary Fund IMF and on political instability .
Since the induction of the caretaker setup the rupee has shed .pc. through August . The consistent devaluation of the . rupee is not only causing inflation but is also compelling the central bank to raise interest rates to mitigate the repercussions of uncontrolled depreciation of the local currency according to bankers .
The steep devaluation will continue and even cross the limit given by the IMF a senior banker had said . nobody knows what is next for the exchange rate . Meanwhile Pakistans sovereign dollar bonds slid today amid a broader emerging market debt rout.
The maturity fell the most by . cents but several were down by cents or more according to Tradeweb data . The maturity was down by just a fraction of cents or by a fraction . According to TradEWeb data from Tradewest data from the Tradeweweb . data .
Meanwhile the government in charge of the IMF has said that nobody knows exactly what to do with the exchange rates to the exchange exchange rate is not in control of anyone. It is not clear whether the government is in control or if it is concerned that it will not be able to control its own currency.
It will not control any of its own or its own foreign currency markets. It has not been able to use any of any of the country’s foreign reserves. It’ is not known if it’ll have a significant amount of foreign currency reserves. The government has been unable to control the foreign exchange markets.
