August 26, 2022 (MLN): Extending its losses further, the Pakistani rupee (PKR) has depreciated by 59 paisa against the greenback in the interbank market at around 10:30 am on Friday compared to the previous close of 219.41 per USD.
The local unit is being traded at 219.94/220.44 with trades being reported at 220 per USD while in the open market, it is being traded at 225/228 per USD.
Primarily, the demand for dollars in the open market has surged due to the newly enforced law by UAE for Pakistani travelers to have 5,000 dirhams along with a valid work visa and a return ticket.
However, Zafar Paracha, President of Exchange Companies of Pakistan attributed this increase in dollar demand to the element of smugling.
In the backdrop of dismal macros as the foreign exchange reserves have declined by $92million in a week to stand at $13.5 billion and foreign direct investment plunged to $59mn in July 2022, the local currency is under severe pressure.
Experts are also of the view that the government's decision of lifting a ban on imports has also played a vital role in the surging demand for dollars.
