Karachi: Bloomberg — a private financial firm based in Manhattan, New York — recently ranked the Pakistani Rupee as the world’s best performing currency against the US dollar during the last three months i.e. from January 1 to March 31, according to a news source. The PKR strengthened due to the excessive inflow of remittance and the limited cash outflow during the ongoing Covid-19 pandemic.
As per the details available, the rupee strengthened by 4.09% since January 1, 2021. During this time period, its figure changed from PKR 153.55 to PKR 152.75 against the dollar, as per the closing rates at the domestic interbank market on Wednesday (March 31). The Canadian dollar placed second, with a 1.25% appreciation recorded during the three months, while the pound sterling held the third slot by gaining 0.64% against the USD.
Experts believe that certain initiatives taken by the federal government have a role to play in the said appreciation, including the recent issuance of Eurobonds that helped raise USD 2.5 billion. At the same time, the resumption of the International Monetary Fund (IMF) loan program worth USD 6 billion has also helped the local currency’s value.
In addition, the remittances sent by expatriates during these testing times, and the increase in investments made via the Roshan Digital Account initiative are also credited to be a major reason behind the massive cash inflow recorded during the first three months of the year.