KARACHI: The Pakistani Rupee (PKR) registered a sharp drop of 16.79 rupees or 36% against the Saudi Riyal in the last seven months from January to July 2022, according to official data.
According to weighted average customer exchange rates issued by the State Bank of Pakistan (SBP), the selling rate of foreign exchange firms opened at Rs47.08 for one Saudi Riyal on 04 January 2022 [the first trading day of the year] compared to the close of Rs63.87 for the Saudi Riyal on July 29, 2022.
READ MORE: Pakistani Rupee to Saudi Riyal on July 31, 2022
The rupiah recorded a massive decline over the year against a basket of foreign currencies. As the local unit recorded a massive decline of 34.35 percent against the US dollar in the interbank foreign exchange market.
The US dollar opened at 178.17 rupees on January 4, 2022 and closed at 239.37 rupees on July 29, 2022 on the interbank foreign exchange market.
READ MORE: Pakistani Rupee to Saudi Riyal on July 30, 2022
Pakistan’s rating downgrade by the three major rating agencies has hurt the country’s outlook, experts said. Moreover, the political conflict has further aggravated the situation.
Additionally, the Rupee has fallen against the SAR due to the currency exchange for the pilgrimage to Saudi Arabia. The Hajj started on July 7, 2022, when the SAR closed at Rs55.49.
READ MORE: Pakistani Rupee to Saudi Riyal on July 29, 2022
The rupiah also fell against the Saudi riyal due to the local currency’s massive fall against the US dollar after the country was trapped by a shortage of foreign exchange reserves.