PKR reaches 228 per USD in open market

August 25, 2022 (MLN): Continuing its losing streak, the Pakistani rupee (PKR) reached 228 per US dollar in the open market on Thursday during intraday trade mainly due to rising demand for dollars compared to yesterday’s rate of 218 per USD.

However, in the interbank market, the local unit is being traded at PKR 219.50/219.60 [12:27 pm] with the trades being reported at 219.50 per USD.

Speaking to Mettis Global, Zafar Paracha, President of Exchange Companies of Pakistan said, “The notable difference of 8.5 rupees between the rates being offered by the interbank market and open market indicate the element of smuggling.”

He also said that the government’s expenditures on international tours and lifting a ban on imports have also played a vital role in the surging demand for dollars.

Meanwhile, other experts are of the view that exporters are holding export proceeds that have created pressure on the local unit.

Malik Boston, President of Forex Association of Pakistan said that the local unit is under pressure on the back of the newly enforced law by UAE for Pakistani travelers to have 5,000 dirhams along with a valid work visa and a return ticket.

This development came after when UAE authorities deported 80 Pakistanis for having fake return tickets and analyst are of the view that the surging demand for AED would continue to pressure PKR. 

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