Exchange rate adjustment may contain imbalances: SBP

The SBP has said that the market-driven adjustment in the exchange rate, based on foreign exchange demand-supply gap in the interbank market, along with other recent policy measures are expected to contain the imbalances in the external account. The money market remained volatile on Monday (11th Jun) as the PKR-USD exchange rate in interbank market went as high as PKR 122 and then closed at PKR 119.84. The PKR has now depreciated for the 3rd time in FY18. Despite the continued growth in exports (13.3% in 10MFY18) and some uptick in remittances, growing imports have pushed the current account deficit to USD 14.0Bn during 10MFY18, which is 1.5 times the level of deficit realized during 10MFY17, said the SBP.