Karachi's financial landscape experienced a shift as the value of the dollar decreased in the interbank market, while the Pakistan Stock Exchange (PSX) saw a rising trend.
The interbank market witnessed a significant decrease in the value of the dollar with 20 paisas. As a result, the American currency fell to Rs278.30, marking a positive development for currency traders and businesses engaged in international transactions.
Meanwhile, the Pakistan Stock Exchange (PSX) witnessed a surge in its performance, with the restoration of the 75,000-point limit. The KSE-100 index rose by a substantial 440 points, reaching an impressive 75,319 points. This surge reflects growing investor confidence and optimism in the country's economic prospects.
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The simultaneous decrease in the dollar value and the upward trajectory of the stock exchange indicate a positive outlook for Karachi's financial sector. These developments are likely to bolster investor confidence, attract foreign investment, and stimulate economic growth in the region.
These developments come amid a significant withdrawal of dollars from foreign currency accounts in banks, leading to a notable decrease in the country’s overall dollar reserves. Over the past week, bank deposits have seen a reduction of $200.67 million, bringing the total down to $5.22 billion.
This decline in bank-held dollar reserves has had a cascading effect on the nation's overall foreign exchange reserves. As of May 24, domestic foreign exchange reserves stood at $14.31 billion, according to the State Bank of Pakistan. This represents a decrease of $270 million from the previous week.
