market rate has fallen badly, bad news for dollar holders

 

Original Content:
KARACHI, Pakistan, Jan 26 (Reuters) - The Pakistani rupee fell 9.6% against the dollar on Thursday, central bank data showed - the biggest one-day drop in over two decades - in a slump that may persuade the International Monetary Fund to resume lending to the country.

The drop comes a day after foreign exchange companies removed a cap on the exchange rate, a key demand of the IMF as part of a programme of economic reforms it has agreed on with the cash-strapped South Asian nation.

The currency's official value closed at 255.4 rupees against the dollar versus 230.9 on Wednesday, the central bank said.

Facing an acute balance of payments crisis, Pakistan is desperate to secure external financing, with less than three weeks' worth of import cover in its foreign exchange reserves, which fell $923 million to $3.68 billion in the latest data.

Pakistan secured a $6 billion IMF bailout in 2019. It was topped up with another $1 billion last year to help the country following devastating floods, but the IMF then suspended disbursements in November due to Pakistan's failure to make more progress on fiscal consolidation.

Rewritten Content:
KARACHI, Pakistan, Jan 26 (Reuters) - The Pakistani rupee fell 9.6% in opposition to the dollar on Thursday, central bank statistics confirmed - the most important one-day drop in over two many years - in a stoop which could persuade the worldwide monetary Fund to renew lending to the u . s ..

The drop comes an afternoon after forex businesses removed a cap on the alternate charge, a key demand of the IMF as part of a programme of economic reforms it has agreed on with the coins-strapped South Asian nation.

The foreign money's respectable fee closed at 255.four rupees towards the greenback as opposed to 230.nine on Wednesday, the principal bank stated.

facing an acute balance of payments disaster, Pakistan is determined to comfy external financing, with less than three weeks' well worth of import cover in its forex reserves, which fell $923 million to $3.68 billion in the today's facts.

Pakistan secured a $6 billion IMF bailout in 2019. It become crowned up with any other $1 billion last yr to assist the usa following devastating floods, but the IMF then suspended disbursements in November because of Pakistan's failure to make more development on monetary consolidation.