On 20 March, the Pakistani rupee (PKR) depreciated sharply against the US dollar (USD) closing down PKR 5 at PKR 115 per USD 1 in the interbank market, after the State Bank of Pakistan (SBP) modified its support to the local currency. This follows another significant depreciation on 8 December 2017 when the PKR/USD exchange rate in the interbank market closed at PKR 107 from an average of PKR 105 in the previous months and subsequent weakening to PKR 110. SBP stated it will continue to closely monitor the foreign exchange markets and be ready to intervene in case of speculative pressures. The depreciation is expected to ease pressure on the balance of payments due to a large import bill and benefit the country’s economy by reducing imports while boosting exports.