January 25, 2023 (MLN): Extending its losing momentum, the Pakistani rupee (PKR) has depreciated by 60 paisa in the interbank market during intraday trade compared to the previous close of PKR 230.4 per USD.
The dollar was being quoted at 230.57/231.07 (10:55 PST) with the trades being reported at 231 while in the open market the dollar is being traded at 237/242 per USD.
Exchange Companies (ECs) have decided to remove the cap from the dollar in the open market from tomorrow, Malik Bostan President of the Forex Association of Pakistan on Tuesday said.
The government’s imposition of a cap on the dollar created a black market. Thus inflows have been reduced from official channels.
He further added, “Dollar shortage also affected people as they needed it for education, travel, and healthcare purpose.”
Currently, exchange companies are short of dollars, and worker remittances are not coming into Pakistan, which causes panic in the market that drives up the dollar rate.
The decision to allow imports of dollars from other sources also increased the rate for Hundi hawala, he noted.
Moreover, he informed the nation that this act will eliminate the black market from the country, as well as the country will see stability in the rupee against the dollar.
