In the open market on Friday, the Pakistani rupee maintained its positive run against the US dollar as the gap with the inter-bank rate fell further, a major benchmark of the International Monetary Fund’s (IMF) Stand-By Arrangement (SBA).
According to dealers, the rupee was quoted at 305 for selling and 302 for buying in the open market for customers, a decrease from Thursday’s values.
Read More: https://economy.pk/intra-day-update-rupee-gains-ground-against-us-dollar-in-inter-bank-market/
The rupee strengthened significantly versus the US dollar in the interbank market, hovering around 302.
Similar rates were offered by the Exchange Companies Association of Pakistan (ECAP).
The local currency has regained momentum after officials allegedly cracked down on dollar smuggling.
According to Inter-Services Public Relations Pakistan (ISPR), the Pakistan Army’s top brass has also emphasised its determination to support the caretaker government in combating all illegal activities that undermine economic stability, growth, and investor confidence.
Meanwhile, currency dealers reported that exchange firms (ECs) have relinquished $ 20 million to the interbank market in the last two days due to a lack of demand.
“All credit goes to Army Chief Asim Munir, who, at the request of the exchange companies, has ordered strict action and set up a task force to control the black marketing and illegal trade of currencies,” Forex Association of Pakistan Chairman Malik Bostan stated.
Because Pakistan is part of an IMF programme, the exchange rate difference between inter-bank and open markets – referred to as the premium by the IMF in its country report on Pakistan published after the SBA’s approval by the Executive Board – must be around 1.25%.
Concerns over Pakistan’s rising imports as restrictions ease, a widening current account deficit, and decreasing foreign exchange reserves have recently put pressure on the rupee.
