PKR on a roll, gains 16.5 rupees against USD in just 14 sessions

September 25, 2023 (MLN): The Pakistani rupee (PKR) continues to show signs of strength as it steadily appreciates against the US Dollar. In the interbank market, the local currency has gained an additional 1.26 rupees during intraday trade, compared to the previous closing of PKR 291.76 per USD.

The local unit was quoted at PKR 290.51/290.66 [10:40 am PST] with the trades being reported at 290.5 per USD while in the open market, PKR is being traded at 293/295 per USD.

In just the last 14 sessions, PKR has gained around 16.5 rupees or 5.68% against the USD in the interbank market.

Moreover, the fiscal year's decline has been significantly reduced to just 4.51 rupees, representing a decrease of only 1.55%. While in the current calendar year, the PKR has seen a depreciation of 64.1 rupees or 22.07% against the USD.

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.

Copyright Mettis Link News