September 21, 2023 (MLN): The Pakistani rupee (PKR) continues to recover against the US Dollar, with the local currency gaining 90 more paisa in the interbank market during intraday trade compared to the previous closing of PKR 293.88 per USD.
The local unit was quoted at PKR 292.95/293 [12:15 pm PST] with the trades being reported at 292.96 per USD while in the open market, PKR is being traded at 294/298 per USD.
In just the last 12 sessions, PKR has gained around 14.15 rupees or 4.83% against the USD in interbank market.
The ongoing crackdown against speculators, hoarders, and smugglers to restrict illegal dollar outflows is effectively strengthening the PKR against the USD.
This crackdown has also exposed various bank staff members who colluded with these hoarders to store large amounts of dollars, which were subsequently used for hawala/hundi transactions, Malik Bostan Chairman of Exchange Companies Association of Pakistan (ECAP) told Mettis Link News.
According to the Chairman, this positive trend is expected to extend if the crackdown against the smuggling of dollars continues.
“In the near future, it is expected that the PKR may reach 250 against the greenback,” he added.
Moreover, exchange companies used to transfer $5 million per day, but due to improved transparency this has now improved to $15m per day.
Improved transparency, coupled with stringent measures against dollar smuggling, is expected to enhance the inflow of remittances to $2.2 billion.
It is pertinent to note that workers' remittances dropped by 23.74% YoY to $2.09 billion in August.
