Islamabad, Mar 21, 2025: The exchange rate of the Saudi Riyal (SAR) against the Pakistani Rupee (PKR) remained steady in the open market, standing at Rs74.70 on Friday, March 21, 2025.
The selling price also held firm, with currency exchange companies offering 1 SAR for Rs75.10, as reported by the Forex Association of Pakistan.
Understanding the Saudi Riyal and Its Exchange Rate Fluctuations
The Saudi Riyal (SAR), the official currency of Saudi Arabia, is commonly abbreviated as SR and subdivided into 100 halalas.
Exchange rates fluctuate due to several economic factors, impacting a currency’s value against others.
Key Factors Affecting Currency Exchange Rates
- Supply and Demand: When demand for a currency rises, its value strengthens. Conversely, a lower demand weakens its exchange rate.
- Forex Market Trends: The foreign exchange (Forex) market, the largest financial trading platform worldwide, plays a significant role in currency valuation. Investor confidence and trading volumes directly affect rates.
- Inflation Impact: Countries with lower inflation tend to have stronger currencies due to increased purchasing power, while high inflation erodes currency value.
- Economic and Political Stability: A country’s trade balance, economic growth, political climate, and central bank policies also influence exchange rates.
Pakistan’s Remittances Show Strong Growth
Pakistan witnessed a significant increase in remittances from overseas workers, with total inflows reaching $3.1 billion in February 2025, marking a 3.8% rise from January 2025, according to the State Bank of Pakistan (SBP).
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Year-on-year, remittances surged by 38.6%, compared to $2.25 billion in February 2024, reflecting a steady inflow of foreign earnings into the country’s economy.
With stable exchange rates and rising remittances, Pakistan’s foreign reserves and economic outlook appear optimistic, impacting trade and currency valuations in the coming months.
