Pakistan’s Currency Plunges 5% in Suspected Devaluation

Pakistan’s currency plunged as much as 5 per cent on Friday in what traders suspect was a devaluation of the currency amid rescue talks with the IMF, the Financial Times reported. The currency traded as weak as 141 rupees to the US dollar, from Thursday’s closing level of 133.9, according to Refinitiv data. ”The IMF’s main demands [for a new loan] included a devaluation of the rupee,” a central bank official in Karachi told the Financial Times. The rupee has tumbled about a fifth since the end of last year in a series of devaluations to avoid a balance of payments crisis. Muhammad Suhail of Karachi’s Topline Securities said the ”devaluation” on Friday was “most likely meant to satisfy the IMF.” An IMF delegation visited Pakistan earlier this month but left without an agreement on a new loan expected to be worth at least $7bn. The two sides are expected to meet by mid-January for further discussions. Read more