PKR strengthens by over one rupee in intraday trade

October 25, 2022 (MLN): Extending its gaining momentum to the third consecutive session, the Pakistani rupee (PKR) has gained over one rupee against the US dollar in the interbank market compared to the previous close of PKR 220.41 per USD.  

The local unit was quoted at PKR 219.25/219.75 [11:23 PST] with the trades being reported at 219.25 per USD while in the open market, PKR is being traded at 221/222.50 per USD.

Though the local unit is kept strengthening against the greenback in the interbank and open market since the last three sessions amid ADB's $1.5bn funds and Pakistan's exit fro grey list, the open market is going through some serious shortage of dollars. 

“There is a shortage of US dollars in the open market,” Zafar Paracha, General Secretary at the Exchange Companies Association of Pakistan (ECAP), confirmed to Business Recorder on Monday.

“Dollar is being traded at Rs232 through unauthorized channels. This is attracting sellers towards the grey market, and they are avoiding formal channels of exchange companies,” he added.

He also said that on a regular day, $ 50-60 million dollars are traded in the open market.

“However, at the moment, less than $5 million are being traded. The dollar is being smuggled to Afghanistan. Despite the central bank’s measures, smuggling remains rampant as it seems that government institutions are not on the same page,” he highlighted. 

The currency dealer said the government needs to revisit its trade and immigration policies with Afghanistan and Iran.

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