The Pakistani rupee maintained its positive trend against the US dollar in the open market on Wednesday, after the currency’s strong performance in the interbank market. Rupee trading at 279 for customer selling and 276 for customer buying transactions.
The previous trading day, the currency had closed at 280 for selling and 277 for buying, based on data provided by the Exchange Companies Association of Pakistan (ECAP). Notably, the current exchange rate is once again lower than the interbank rate.
This consistent appreciation follows concerted efforts by the State Bank of Pakistan (SBP) to curb the strength of the US dollar, which included the introduction of a set of “structural reforms” targeting the Exchange Companies (ECs) last month. In response to these measures, seven banks have announced their intention to establish an Exchange Company (EC) as a wholly-owned subsidiary.
In addition to the central bank’s measures, the interim government has taken administrative actions to clamp down on currency smuggling and hoarding. This has resulted in nationwide raids, leading to the closure of numerous illegal currency exchange operations and the confiscation of foreign currency valued at millions.
Furthermore, the SBP has suspended the authorization of four exchange companies in September alone as part of these efforts to stabilize the currency market.
